UK Borrowing Plan Under Burnham
The UK government under new Prime Minister Andy Burnham is considering borrowing up to £9 billion in the next Budget to boost growth, according to reports. Chancellor John Healey has already instructed departments to prepare for cuts, but borrowing appears the preferred path to avoid internal Labour Party conflict and unpopular tax rises. This stands out as a signal of continuity in fiscal tinkering amid stagnant productivity and political pressure after Burnham’s poll bounce.
Background: Burnham’s unofficial economic advisor Jim O’Neill backs using the funds for productivity-enhancing areas such as housing, transport and business investment via the British Business Bank (BBB). The BBB’s balance sheet remains modest at around £6 billion despite a recent £10 billion lending capacity increase, dwarfed by Germany’s KfW (€545 billion). Rules limit stakes to £65 million per firm, insufficient for scaling global competitors. Britain’s independent currency and low relative debt addition (1.5% of stock over five years) mean markets are unlikely to panic; extra interest would be minor.
Key tensions: The plan risks repeating past failures by pouring money into a model that has driven firm exodus to the US for better capital access. Without a clear industrial strategy for what Britain will produce and sell, the sum is too small to fix potholes, let alone transform infrastructure or finance. It prioritises short-term party unity over structural reform, leaving open whether this merely delays harder choices on taxes, spending or deregulation.
Sources: UnHerd.
Corruption Scandals Threaten Zelensky
A series of NABU/SAPO investigations, including Operation Midas tapes from bugged meetings, has exposed large-scale war profiteering in Ukraine’s energy sector involving figures close to President Zelensky. Suspects include former chief of staff Andriy Yermak, former business partner Tymur Mindich (who fled to Israel), and others. Kickbacks of 10-15% on Energoatom contracts and influence over Sense Bank’s board after nationalisation have fuelled protests (“Cardboard Maidan”) and polls showing corruption now seen by many Ukrainians as a greater threat than the war itself.
Background: Zelensky won in 2019 as an anti-corruption outsider. Independent bodies like NABU have pursued cases aggressively, seizing cash and documents, while media and street protests continue. Yet attempts to curb NABU’s independence and the sacking of reforming defence minister Mykhailo Fedorov backfired. Western officials, including the EU’s Kaja Kallas, have expressed regret over diverted funds meant for the front. Sense Bank’s state takeover and board appointments raise questions about control of a systemically important institution potentially linked to aid laundering.
Key tensions: No direct evidence implicates Zelensky personally, but proximity of allies and poor judgment claims undermine his democratic contrast to Putin. This coincides with Ukrainian drone successes and US sanctions progress, yet erodes domestic support (approval still high but falling) and Western willingness to fund. Open questions remain on full tape releases, extraditions, judicial outcomes, and whether reforms can restore credibility without destabilising wartime leadership.
Sources: UnHerd.