Opinion: Burnham is Britain's new prime minister. Now what?

Skip NavigationMarketsPre-MarketsU.S. MarketsEurope MarketsChina MarketsAsia MarketsWorld MarketsCurrenciesPrediction MarketsCryptocurrencyFutures & CommoditiesBondsFunds & ETFsBusinessEconomyFinanceHealth & ScienceMediaReal EstateEnergyClimateTransportationInvestigationsIndustrialsRetailWealthSportsLifeSmall BusinessInvestingPersonal FinanceFintechFinancial AdvisorsOptions ActionETF StreetBuffett ArchiveEarningsTrader TalkTechCybersecurityAIEnterpriseInternetMediaMobileSocial MediaCNBC Disruptor 50Tech GuidePoliticsWhite HousePolicyDefenseCongressExpanding OpportunityEurope PoliticsChina PoliticsAsia PoliticsWorld PoliticsVideoLatest VideoFull EpisodesLivestreamTop VideoLive AudioEurope TVAsia TVCNBC PodcastsCEO InterviewsDigital OriginalsWatchlistInvesting ClubTrust PortfolioAnalysisTrade AlertsMeeting VideosHomestretchJim's ColumnsEducationSubscribePROPro NewsJosh BrownMike SantoliCalls of the DayMy PortfolioLivestreamFull EpisodesStock ScreenerMarket ForecastOptions InvestingChart InvestingSubscribeLivestreamMenuMake ItselectUSAINTLLivestreamSearch quotes, news & videosLivestreamWatchlistSIGN INCreate free accountMarketsBusinessInvestingTechPoliticsVideoWatchlistInvesting ClubPROLivestreamMenu (function() { const userMembershipOnLastVisit = localStorage.getItem("cnbcMeta__cachedUserMembership"); if (!userMembershipOnLastVisit) { // If no user membership is stored, user is likely not logged in. // These users will typically see the banner. return; } const { isPro, isInvestingClubUser } = JSON.parse(userMembershipOnLastVisit); if (!(isPro || isInvestingClubUser)) { // We’re rendering the top banner for users who are not pro or investing club members. return; } // Hide the banner for pro and investing club users. const style = document.createElement("style"); style.id = "top-banner-placeholder-style"; style.innerHTML = "[data-top-banner-placeholder] { display: none; }"; document.head.appendChild(style); })() OpinionOpinion: Burnham is Britain's new prime minister. Now what?Published Tue, Jul 21 20264:55 AM EDTUpdated 4 Hours AgoSteve Sedgwick@steve_sedgwickWATCH LIVEKey PointsBritain's new prime minister, Andy Burnham, surprised Westminster with his choice of finance minister.Soon after taking office, he also unveiled his first major policy: scrapping VAT on household electricity bills.While the tax cut may win over voters, there's another audience Burnham needs to convince: the financial markets.Andy Burnham after officially being confirmed as the new leader of the Labour Party, at a special conference held at the Trades Union Congress, in central London. Picture date: Friday July 17, 2026. (Photo by Yui Mok/PA Images via Getty Images)Yui Mok - Pa Images | Pa Images | Getty ImagesAndy Burnham wasted little time making his mark.Within hours of taking office, Britain's new prime minister Andy Burnham surprised Westminster with his choice of finance minister, opting for John Healey instead of the widely expected Shabana Mahmood. He also unveiled his first major policy: scrapping VAT, a consumption tax, on household electricity bills, saving the average household around £45 (roughly $60) a year. The move is designed to put more money back into consumers' pockets. But while the tax cut may win over voters, there's another audience Burnham needs to convince: the financial markets.Because while a £45 saving on electricity bills grabs headlines, the bigger question is whether his government can deliver those promises without undermining Britain's fiscal credibility.Dare I offer a word to the wise though and point out that economic and fiscal stability is way more important to British households than an eye-catching VAT cut.In fact, British households will be much bigger winners if the fiscal problems are