Less than three months into his tenure as prime minister, Andy Burnham faces mounting economic and political challenges, according to a former close adviser. Andy Haldane, the former Bank of England chief economist and once a key ally of Burnham, cautioned that the prime minister’s early momentum appears to be waning amid growing concerns over the country’s financial outlook.

Speaking on LBC with presenter Nick Ferrari, Haldane suggested that Burnham’s recent speech, delivered a few weeks ago, likely marked the peak of his political and economic standing. “I suspect the high-water mark, both economically and politically, was probably Andy’s speech a couple of weeks ago,” Haldane said. He added that the government may now be entering a period of decline on both fronts.

Haldane identified the looming cost-of-living pressures as a significant factor contributing to this downturn. He forecasted considerable difficulties for households facing rising expenses this winter, describing the overall fiscal position as “precarious.” This environment, he implied, could undercut political support for the prime minister and increase economic instability.

In addition, Haldane addressed Burnham’s proposal for a new national care service aimed at providing free personal care to older adults. While he acknowledged the initiative as well-intentioned, he expressed skepticism about its financial viability. “Probably unfundable,” Haldane said of the plan, given the current constraints on public finances.

The warning from a former insider underscores the challenges Burnham confronts as he seeks to implement ambitious social programs while managing economic headwinds. The prime minister’s capacity to maintain political momentum and navigate the anticipated cost pressures will be closely watched in the coming months as the government grapples with policy priorities amid fiscal pressures.