Fears Burnham tax rises will strangle economy as figures show growth already stalling - but Pound rises as traders bet 'Red' Ed Miliband WON'T be Chancellor

By JAMES TAPSFIELD, UK POLITICAL EDITOR Published: 07:28, 16 July 2026 | Updated: 07:49, 16 July 2026 Andy Burnham has raised fears he could strangle the economy with even more tax rises - as figures showed growth already stalling. Official data revealed that GDP grew just 0.1 per cent in May, having dropped by the same proportion in April. The grim numbers came after the incoming PM admitted he might 'ask for a little more' from Britons during a chat with Gary Lineker - even though the tax burden is headed for record levels. However, markets have been calmed somewhat ahead of the No10 handover on Monday amid signs Ed Miliband is losing his battle to become Chancellor. The Pound has gained ground and UK borrowing costs have eased with Shabana Mahmood now favourite to take the crucial role instead of the 'Soviet' Net Zero Secretary.  Despite being just days away from taking office, Mr Burnham has so far revealed little of his plans for the country as concerns grow about his mandate to be PM. Andy Burnham admitted he might 'ask for a little more' from Britons during a chat with Gary Lineker - even though the tax burden is headed for record levels Official data revealed that GDP grew just 0.1 per cent in May, having dropped by the same proportion in April The Pound has been rising against the US dollar amid signs that Shabana Mahmood is set to become Chancellor He has spoken only once in the House of Commons since returning to Parliament as the new Makerfield MP. The former Greater Manchester mayor also exited a major speech at the end of last month without taking questions from the media. Mr Burnham instead opted to selectively answer questions on website Reddit, and he has now spoken in vague terms about what he might do in power during a light-hearted chat with ex-footballer Lineker. As well as suggesting to the former Match of the Day host that he would be 'very upfront' in areas of disagreement with US President Donald Trump, Mr Burnham signalled he is open to hiking the tax burden. In response to Mr Burnham's comments, Tory leader Kemi Badenoch cautioned the country is facing 'another summer of chaos with Labour obsessing about who they can tax to pay for more benefits'. Suren Thiru, ICAEW Chief Economist, said: 'This underwhelming outturn highlights the UK's vulnerability to a prolonged re‑escalation of US–Iran hostilities, as a sustained spike in oil prices would further damage an already frail economy, strengthening stagflation risks and eroding the incoming Prime Minister's fiscal headroom. 'The imminent change in Prime Minister risks casting a shadow over the UK economy, with heightened uncertainty over future tax policy likely to make consumers and businesses more reluctant to spend and invest.' Samuel Edwards of global financial services firm Ebury said: 'Questions over the future Chancellor and the Burnham government are adding another layer of concern, leaving businesses looking for greater clarity on the Government's economic direction and whether further tax increases for employers could be on the table.'  A Treasury spokeswoman said: 'We have the right economic plan which has put the UK in a much stronger position than two years ago with the fastest growth in the G7 in the first quarter and the OECD agreeing that we have restored stability. 'We're forecast to be the fastest growing European G7 economy this year and next, inflation is steady, and for the first time since 2004, we are forecast to borrow less this year than the G7 average.' Markets have been calmed somewhat ahead of the No10 handover on Monday amid signs Ed Miliband is losing his battle to become Chancellor The Pound has gained ground and UK borrowing costs have eased with Shabana Mahmood now favourite to take the crucial role