Lord Jim O’Neill, a crossbench peer and former treasury minister, has announced he will not accept a formal role in Andy Burnham’s government despite being considered for chief economic adviser. O’Neill, who previously served as commercial secretary to the Treasury from 2015-2016 under Chancellor George Osborne, stated that taking on an official government position would require constraints he prefers to avoid. These limitations include placing investments in blind trusts and relinquishing control of other business ventures to comply with official regulations.
O’Neill explained that he is currently engaged in numerous activities he enjoys and values maintaining control over his professional portfolio. He emphasized that his decision was not motivated by policy disagreements with the incoming administration. Instead, he expressed enthusiasm for the government’s emphasis on devolution and encouraged the leadership to pursue ambitious approaches in this area and other initiatives. O’Neill highlighted Greater Manchester as a successful case study in economic development, suggesting that replicating such growth patterns in other populated areas could enhance overall national economic performance.
Regarding fiscal matters, O’Neill addressed questions about potential tax increases in the upcoming October budget. He noted that decisions about taxation and spending priorities, including defense expenditure, remain the responsibility of the prime minister and government team. He expressed skepticism about further increases in certain taxes, particularly capital gains taxes affecting venture capital and genuine risk-taking investments. O’Neill also advocated for more thoughtful approaches to welfare expenditure, noting that government spending has increased significantly in recent years and suggesting that comprehensive welfare reform should accompany budgetary decisions.
O’Neill is an accomplished economist known for coining the term Bric in 2001 to describe Brazil, Russia, India, and China as emerging markets with substantial growth potential. The designation later expanded to Brics with the addition of South Africa. A native of Greater Manchester, O’Neill was instrumental in advancing the Conservative Party’s Northern Powerhouse initiative, which aimed to strengthen economic development across northern England.
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