Former Bank of England chief economist Andy Haldane has urged Prime Minister Andy Burnham to halt further tax rises in the upcoming Budget.
Writing in the Financial Times, Haldane called for an immediate moratorium on tax increases and regulatory burdens for businesses and consumers ahead of the government's planned October 28 Budget.
Haldane, who currently serves as president of the British Chambers of Commerce, warned that recent government budgets have been outright harmful to the private sector.
He argued that political leaders, including Keir Starmer and Chancellor of the Exchequer Rachel Reeves, previously courted corporate leaders with a smoked salmon and sauvignon blanc offensive before letting the business community down with tax increases. Despite the harm caused by those measures, UK economic output continued to expand during the first two quarters of 2026.
Tax increases introduced by Reeves, most notably a freeze on personal tax allowances, are scheduled to remain in effect until the end of the decade.
Burnham Economic Policy and State Spending
Haldane was initially brought in as part of Prime Minister Burnham's economic advisory team following Burnham's installation in office on July 20. Haldane is widely regarded as a respected economic voice who has frequently expressed frustration over areas in Northern England left behind by economic growth.
During his previous role as chief economist at the Bank of England, the UK central bank, Haldane correctly identified rising inflation in the spring of 2022 while Bank Governor Andrew Bailey insisted that price increases were transitory. Inflation subsequently reached a 41-year high of 11.1 per cent, during which Haldane stood alone in calling for interest rate increases and an end to quantitative easing money printing.
Haldane was appointed to Burnham's economic advisory team alongside Lord O'Neill of Gatley, a former Conservative minister and Goldman Sachs economist. However, Lord O'Neill departed the advisory group following a reported disagreement regarding proposed wealth taxes. Both economists concluded that taxation in the UK has reached a saturation point.
As president of the British Chambers of Commerce, Haldane had been viewed as an unlikely partner for Burnham, given the Prime Minister's support for state intervention. Since taking office on July 20, Burnham has announced several uncosted initiatives, including a cap on bus fares and a reduction in value added tax on household energy bills. City economists suggest Burnham's state intervention policies could cost £25 billion, with total costs rising higher if Thames Water is brought onto the government balance sheet.
Neither Prime Minister Burnham nor Chancellor John Healey has doused reports that the government is preparing a third consecutive tax-raising Budget for October 28. Chancellor Healey is currently seeking funds to cover a deficit in defence spending, though critics note he has remained silent on reducing welfare spending or public sector costs.
Smith+Nephew Boardroom Instability and Investor Pressure
British medical technology firm Smith+Nephew is facing severe board instability and mounting pressure from activist investors following executive resignations.
The FTSE 100 healthcare pioneer, which specializes in orthopaedic replacements, wound repair, and sports medicine, has experienced persistent boardroom turnover despite leadership from chairman Rupert Soames.
Finance director John Rogers became the latest executive to depart after insisting on working from the United States. Within hours of leaving the London-listed company, Rogers was appointed vice-president of rival medical technology firm Baxter International.
Short traders currently hold 8.5 per cent of Smith+Nephew stock as activist investors demand urgent strategic changes. Activist demands include replacing chief executive Deepak Nath, whom critics describe as sub-octane, selling or spinning off the orthopaedics division covering hip and knee replacements, focusing on profit margins, and eliminating write-offs. Analysts note that while the group retains strong intrinsic value in research and development, operational execution has been criticized as crass.
Global Stock Market Movements
Global financial markets experienced rapid stock price movements across the pharmaceutical and technology sectors.
Shares in United States pharmaceutical company Moderna jumped 150 per cent following successful clinical trial results for its melanoma skin cancer vaccine.
In Shanghai, stock in newly listed humanoid robotics manufacturer Unitree surged 629 per cent during trading.
