Economist Lord Jim O'Neill has ruled out taking on a formal role in Andy Burnham's new government. The ex-Conservative treasury minister, from Gatley, Stockport, said he does not want the financial 'constraints' that would come along with a government role.
Decision over blind trust
Lord O'Neill, who has been advising the former Greater Manchester mayor, had been tipped to take an official role as chief economic adviser. But the crossbench peer told the Financial Times he had decided against a government position after being advised he would have to place his business interests in a blind trust if he took on the role. Blind trusts are intended to avoid public conflicts of interest by preventing public officials from knowing how their investments are being managed.
Lord O'Neill, the ex-Goldman Sachs chief economist, insisted the decision was not the result of any policy disagreement with Mr Burnham, who took office on July 20. “I’ve decided to not take a formal role,” he said. “I enjoy what I’m doing too much, and I don’t want the constraints of a blind trust and all the constraints that would be necessary.”
Support for devolution
He added: “It’s not because of any policy disagreements. I’m a massive fan of the focus on devolution and I hope Andy and his team will be bold on this and everything else.” He said he hoped to maintain an informal relationship with the Prime Minister and his team moving forward.
Speaking to BBC Radio 4’s Today programme, he added: “I came to the conclusion I’d rather just be a voice if they want to want to talk to me – that is, occasionally – and get on with the rest of the things in my life.”
Fiscal devolution and economic growth
Lord O'Neill, who chairs the Greater Manchester Local Enterprise Partnership (LEP) Advisory Board, has made repeated calls for fiscal devolution to regions like Greater Manchester. He suggested Mr Burnham could boost the UK’s economy by replicating the growth seen in the region over the last 15 years in other areas. “If you can repeat that around a number of places with a lot of people, then if you just simply add up the mass, then the national economic performance would improve,” he said.
Optimism under the new prime minister could also spark a boost and bring down the savings rate, he added. “If people can start to feel a bit more upbeat about things, there’s a decent chance that savings rate comes down, and people start to consume and spend more,” he said.
Amid speculation of coming tax rises to fund Mr Burnham’s plans, he said he was not in favour of so-called wealth taxes, in particular for 'capital gains for genuine risk-taking things like venture capital'. “We need more genuine risk-taking and more entrepreneurs, and we need to boost these sort of green shoots of growth that are there,” he said.
