Economists urge Burnham to back UN inequality panel ahead of G20 chairmanship

Forty prominent progressive academics have signed an open letter urging Prime Minister Andy Burnham to commit the United Kingdom to a new United Nations initiative aimed at tackling global inequality. The signatories, which include Nobel laureate Joseph Stiglitz and Kate Pickett, co-author of The Spirit Level, are calling for London to join the establishment of an International Panel on Inequality (IPI).

The proposed panel, which is being developed at the UN and will be chaired by Stiglitz, aims to provide an independent, trusted global evidence base on the causes and consequences of inequality. It will also analyse policies designed to reduce these disparities, mirroring the approach of the Intergovernmental Panel on Climate Change. Brazil, South Africa, Norway, and Spain have already been involved in setting up the body.

In their letter, the experts argue that backing the IPI would allow Burnham to cement the organising principles of his politics on the world stage. They reference the prime minister’s domestic agenda, specifically the Makerfield test, which seeks to ensure fairness for places neglected by Westminster. The academics contend that while these national efforts are commendable, inequality is a global issue that is becoming more entrenched as the geopolitical climate destabilises.

The appeal highlights the UK’s upcoming chairmanship of the G20 in 2027 as a critical opportunity for British leadership. The G20 brings together leaders from the Global South, including China, India, and Brazil, alongside traditional G7 powers. The letter urges Burnham to signal strong support for the initiative during his attendance at the UN General Assembly next month, positioning the UK as a leader in global development and wealth disparity reduction.

This call for renewed international engagement follows a period of reduced overseas aid spending under the previous Labour government led by Keir Starmer. Starmer’s administration cut aid to increase the defence budget, prompting the resignation of development minister Anneliese Dodds and leading to significant reductions in bilateral aid to some African countries. The new government, however, has signalled a desire to make international development a central priority, with Foreign Secretary Ed Miliband indicating he will take up the UK’s seat on the World Bank board himself.

Stewart Wood, the Foreign Office minister for growth, responded to the letter by affirming the government’s commitment to economic fairness through international cooperation. He stated that the government would work with allies to build a coalition for economic change, combat inequality, and support coordinated development efforts. Labour MPs have also been calling for a long-term roadmap to return to spending 0.7 per cent of national income on overseas aid, a target set by Gordon Brown under the last Labour government and subsequently cut by Starmer.

The academics, led by Pickett, a professor at York University, emphasise that Burnham’s record as mayor of Greater Manchester demonstrates his long-standing championing of inequality issues. They argue that the IPI would provide the evidence base necessary to guide global policy solutions, tracking extreme wealth disparities and recommending actions to curb the influence of what Stiglitz has previously termed “vulture funds”.