They’re back – MPs returned from their summer recess today, and this afternoon Andy Burnham had his first chance to address Parliament as Prime Minister.
Positioning himself as the antidote to Thatcherism and its legacy, Burnham said that the country took ‘a series of wrong turns’ from the 1980s onwards and vowed to bring more public control over essential services. Kemi Badenoch offered a rather different analysis, accusing Burnham of living in the past and arguing for letting people keep more of their money. The Tory leader had reason to be on the front foot: a new poll from More in Common today showed the Conservatives ahead of Reform UK for the first time in 18 months.
Both Burnham and his Chancellor should be even more worried with Britain’s borrowing costs, which spiked amid increased tensions in the Middle East – see our Stat of the Day, below. With money already tight ahead of the autumn Budget, and the OBR preparing its forecasts, this could increase the cost of debt interest over the next few years by billions. If they weren’t already planning more tax rises – they are now.
Below you’ll find all the latest pieces from CapX, plus what we’re reading from around the web.
Marc Sidwell
Editor, CapX
Today’s Takes
Fresh thinking from CapX
Nationalisation is not a growth strategy
Mani Basharzad
‘This is the fundamental flaw in Burnham’s economic policy: small solutions for big problems, paired with Labour myths about ‘40 years of neoliberalism’ in the rhetoric.’
Andy Burnham has inherited a tough economic situation with little room for manoeuvre. His solutions will make it worse. He excels at TikTok communication and vibes, but the country needs serious economic policy. In the face of record high borrowing costs, populist policies capping bus fares or promises that nationalisation will deliver growth don’t cut the mustard. Read More
The countryside lobby’s war on batteries
James Ball
‘The Campaign to Protect Rural England… has a successful playbook for blocking battery energy storage systems, particularly in Devon.’
A new battery site in Devon has been blocked. It was meant to store solar energy that could power thousands of homes but was rejected out of fear of setting the countryside ablaze. Not an unserious objection, until you discover that there are 100 sites like this worldwide and it has passed the UK’s national fire safety test. Read More
Stat of the Day
Best of the Web
Britain’s green taxes are economic vandalism
Kathryn Porter, The Telegraph
‘In 2025, we imported 15.5 million tonnes more petroleum products than we exported, the largest deficit since Britain became a net importer in 2013.’
Britain has lost two oil refineries in little more than a year. But closing a British refinery does not make domestic demand for diesel or jet fuel disappear. Instead, it increases imports – and simply exports the emissions elsewhere. Thanks to the Emissions Trading Scheme, government policy is actively making this situation worse. Read More
🎧Planning keeps us in the past
James Price
Can Burnham reform the Civil Service?
Jonathan Eida, City AM
‘Between 2016 and 2026, Civil Service headcount increased by almost 140,000, or 33.3%. Since 2025 alone, the number of civil servants has increased by 8,165.’
Politicians are finally discovering what taxpayers have known for years: the Civil Service is too big, too expensive and too slow. Ahead of the next general election, the Tories, Reform and even Labour have proposed addressing this problem in different ways. But under Andy Burnham, the issue is only likely to get worse. Read More
The Capitalist: The inventions our cities needed
And if you want more...
– JD Vance and the politics of victimhood (Reason)
– Why is Britain paying benefits to millionaires? (The New Statesman 🔒)
– Britain’s looming AI national security crisis (James O’Malley)
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