Andy Burnham has refused to rule out further tax rises in his October Budget, in his first Prime Minister’s Questions, as Kemi Badenoch accused him of being a “people-pleaser”.
The Tory leader said the markets were “clearly worried that we now have a spendthrift prime minister”, and pushed Mr Burnham on his intentions to hike taxes.
He responded: “I’ve already indicated my first moves were to cut tax but I’m not going to do what any prime minister has done and write the Budget here.”
The former Greater Manchester mayor reiterated his commitment to meet defence spending targets and to ditch the controversial digital ID plan.
Earlier on Wednesday, he was warned that the UK could not afford to maintain the pension triple lock, as borrowing costs spiral.
Sir Howard Davies, the former chairman of NatWest, said the UK “can’t afford it”, adding: “If a government does not grasp that nettle at some point, then I think its credibility is going to be on the rack.”
He said concerns about the prime minister’s approach to public spending were causing “some market jitters”, and called on him to “make some signs” about No10’s overall approach.
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Key Points
- Burnham refuses to rule out further tax rises in October Budget
- Banking boss warns Burnham that UK 'can't afford' pension triple lock
- Emmanuel Macron to visit No10 in Burnham's first meeting with world leader
- Burnham insists he will 'fully fund' defence plan to meet Nato target
- PMQs analysis: Burnham’s shows why he is different from Starmer from the get-go
Sketch: As Andy Burnham bounced, Kemi Badenoch looked lost without Keir Starmer to pummel
15:30 , Dan Haygarth
Kemi Badenoch looked lost without Keir Starmer to pummel
Full story: Farage claims probe into undeclared £5m crypto billionaire’s ‘gift’ is rigged against him
15:20 , Dan HaygarthNigel Farage has claimed that the result of an inquiry into his undeclared £5m donation from a crypto billionaire is rigged against him, in an extraordinary attack on those who will decide his fate.
The leader of Reform UK has just returned to parliament after winning a by-election he called in his Clacton constituency in protest at the Commons’ standards inquiry against him over the donation from Christopher Harborne.
The donation was received before Mr Farage became an MP in July 2024 but was less than a year before the election so fell into the period when it should have been declared, according to complainants. Mr Farage has insisted that the donation was personal to pay for his private security, so there was no need to declare it.
In outlandish comments, which have echoes of Boris Johnson’s attack on the Privileges Committee in 2022, Mr Farage has suggested that MPs and independent members of the Standards Committee have already prejudged him as guilty without a fair hearing.
He told the BBC: “Well, I mean, that investigation, the outcome. Have you seen who is on the committee? I think we know the outcome already.”
Read more below.
Farage claims probe into £5m crypto billionaire’s ‘gift’ is rigged against him
Reform up against a ‘complainant society’ Farage claims after summer of scrutiny
15:04 , Dan HaygarthNigel Farage has claimed Reform UK is up against a “complainant society”, as he faces ongoing scrutiny about funding both he and his party have received.
The Reform leader, speaking to the BBC before his party’s conference in Birmingham this week, suggested he believed a “whole ecosystem” of the establishment was out to attack the “new kids on the block”.
Mr Farage faced persistent questions over the summer about the party’s finances, as well as £5 million he received from a cryptocurrency billionaire ahead of the last general election.
He indicated to the BBC he will soon be interviewed by Parliament’s standards commissioner, who is investigating whether Mr Farage should have declared the £5 million from Thailand-based billionaire Christopher Harborne in his register of MP interests, because the sum was given shortly before the 2024 election.
Mr Farage insisted he had taken “strong legal advice” on it, adding: “This was purely personal. It was given, no strings attached.
“It was unconditional, but the intention was very clear that I am someone who the state, despite being asked repeatedly to help, just refuses to do so, and I’m going to need a degree of security for as long as I live, it’s just as simple as that.
“It wasn’t a political donation. It wasn’t used to fight a campaign or anything like that.
“So I think my judgment was right. Anyway, if they find me guilty, they find me guilty of not filling in a piece of paper.”
Burnham warned cash ‘not vibes’ needed to bolster defence amid rising threat from Russia
14:45 , Joe MiddletonAndy Burnham has been warned that "vibes are not going to work" on defence policy, as he defended his plans for funding the armed forces at Prime Minister’s Questions.
Labour MP Tan Singh Dhesi, who chairs the Commons Defence Select Committee, cautioned the Government over reported moves to drop a commitment to spend 3% of GDP on defence by 2030.
Earlier, Mr Burnham informed Conservative leader Kemi Badenoch that there was "no problem" regarding the party's defence stance.
Mr Dhesi warned: "The British people should be under no illusion that the nation faces a significantly increased threat level, especially from Russia, but also we have a US leadership for whom European security is no longer a focus or priority, and that is why it is imperative that we invest in our armed forces in the here and now, rather than be sorry later."
Burnham warned cash ‘not vibes’ needed to bolster defence amid threat from Russia
Who won Burnham’s first PMQs? Have your say
14:20 , Jane Dalton
Who won Andy Burnham’s first PMQs, the PM or Kemi Badenoch? Have your say...
Brussels agenda risks ‘problems for steel’, PM warns in plea for closer EU ties
14:13 , Holly EvansAndy Burnham has warned Brussels’ Made In Europe agenda “could pose significant problems for British steel”, as he said he wanted a “closer relationship” with the European Union.
Answering his first Prime Minister’s Questions on Wednesday, Mr Burnham indicated farming and steel were at the top of his agenda for talks with the 27-member bloc.
He said striking a “good deal for British steel” was “imperative”, after Liberal Democrats leader Sir Ed Davey urged him to “join the single market”.
On Tuesday, when he appeared in the Commons as Prime Minister for the first time, Mr Burnham said: “Britain is not where any of us would wish it to be.”
He claimed this was the result of a “series of wrong turns” since the 1980s, including “hollowing out councils”, austerity measures and Brexit – the vote to leave the European Union a decade ago and the withdrawal process which followed.
The European Union earlier this year unveiled regulations designed to protect the steel industries in its member states, amid fears global overproduction of the alloy was affecting the bloc’s steel market.
The deal limited tariff-free import volumes to 18.3 million tons a year – a 47 per cent reduction compared with 2024 quotas.
The UK Government also lowered the tariff-free quota level for steel importers by 51 per cent compared to current arrangements, and any imports above these levels will face a 50% tariff.
Analysis: Burnham shows why a change was good for Labour
13:48 , Jane DaltonAnalysis by our political editor David Maddox:
This first session of PMQs will not probably live long in the memory in terms of news lines or anything remarkable happening but it has set a tone for the new government under Andy Burnham.
The new prime minister was able to demonstrate very quickly why he is a huge improvement on Sir Keir Starmer, at least in presentation and ability to come over as a human being.
Out were the stiff, robotic, bad tempered answers of the Starmer period where the prime minister often failed to address the actual question.In was an ability to emphasise, provide genuine answers, show warmth but also spar with opponents.
The “no points scoring” lasted just six questions when Mr Burnham finally copied his predecessor on one tactic of reminding the Tories about the Liz Truss government.
Nevertheless, the prime minister did address the points being put to him by Kemi Badenoch as well and the tone was so much better than before.
It is clear that Ms Badenoch does not quite know what to make of the new PM’s style and is struggling to land blows on someone who, unlike Starmer, is not a fixed target.
Her going for the jugular approach will not work as effectively with Mr Burnham and now she appears to be the inflexible one who cannot change style.
It all meant that Mr Burnham came out as a winner in a PMQs which, with the bond markets in turmoil, could have been more problematic. It is unlikely to be so easy for him going forward though.
Labour defence chairman warns PM it's 'imperative' to spend 3% on armed forces
13:47 , Jane DaltonThe Labour chairman of the defence select committee has warned Andy Burnham it is “imperative” that the government invest in the UK’s armed forces immediately, rather than regretting not doing so later.
In a strongly worded question in the Commons, Tan Dhesi urged the prime minister to commit to spending 3 per cent of GDP on defence by 2030.
He said: “The British people should be under no illusion that the nation faces a significantly increased threat level, especially from Russia. But also we have a US leadership for whom European security is no longer a focus or priority.
“That is why it is imperative that we invest in our armed forces in the here and now, rather than be sorry later.
“Indeed defence is definitely one area where vibes alone just isn't going to be enough.
“Rather than kicking the can down the road, waiting for a fiscal event in a future year, will the prime minister urgently commit to charting a pathway to reach 3 per cent of GDP spend on defence by 2030 which, as his chancellor rightly noted, is critical to keep our country safe?”
Mr Burnham said: “I have made that commitment, made it very clear. I have done for a considerable period of time.
“I was in Ukraine last week for a very specific reason: to repeat it on the world stage.
“I also think, alongside our commitment to defence, we also have to build the resilience of Britain. We need to ensure that the maximum amount of that funding committed to the defence investment plan goes back into the reindustrialisation of our communities.”
Labour-backing economist warns of unsettled markets as bonds rise again
13:24 , Jane DaltonKemi Badenoch pointed to a warning from Lord Jim O’Neill that the Prime Minister’s tone during his Tuesday Commons debut would have unsettled investors.
The Conservative leader said: “Lord O’Neill, a close friend of the Prime Minister, said yesterday’s statement in the Commons was the last thing investors wanted to hear.
“Lord O’Neill is a serious economist. He knows what he’s talking about and, sure enough, yesterday the cost of government borrowing rose to its highest in 18 years.
“How does he plan to tackle the government’s rising debt costs?”
Mr Burnham replied that he and Lord O’Neill did not always agree before turning to the Tory legacy.
He said: “When they were in government, we saw 14 years of stagnant growth. We saw 14 years of debt rising as a percentage of GDP.
“I would say to her that the turbulence on global markets are because of that exposure that they left behind.”
The yield on UK government bonds – also known as gilts – edged higher once again on Wednesday, compounding the headache facing Chancellor John Healey as he prepares his first Budget.
The three reasons behind the bond market shock and what it means for Andy Burnham’s first Budget
13:00 , Holly EvansBonds are back in the headlines after hitting their highest level since the global financial crisis, with 10-year returns now standing at 5.29 per cent.
While bond yields are rising globally, the UK version, known as gilts, spiked on Tuesday into Wednesday, rising the fastest among G7 nations.
So what’s causing it and what does it mean ahead of next month’s Budget for Andy Burnham and his chancellor, John Healey?
Read the full analysis from business correspondent Karl Matchett here:
The three reasons behind bond market shock and what it means for Burnham’s Budget
Watch: Digital ID not a priority for my Labour government, says Burnham
12:52 , Holly EvansPM says he supports 'broken window' policy in tackling crime
12:47 , Holly EvansWhen questioned what he would do to support people in communities who were dealing with antisocial behaviour such as dangerous driving, Andy Burnham said he supported the “broken window” approach to policing.
“Fireworks, I think there is a case for going further, regulating those. But on antisocial behaviour more broadly, I supported Greater Manchester Police in taking the toughest possible approach to antisocial behaviour through Operation Vulcan. I think it can be extended elsewhere,” he said.
“We shouldn’t accept that this is just the daily norm in communities. I happen to support the ‘broken window’ theory of policing, if you let small things go, bigger things come along, and we should change the way we think about neighbourhood policing, as the Home Secretary is doing.”
Burnham admits problems with maternity care across the country
12:39 , Kate DevlinThere are structural issues affecting maternity services across the UK”, the PM said as he was challenged over the temporary closure of a unit in North Devon that has now gone on for three weeks.
Lib Dem leader Sir Ed Davey told the Commons staff shortages were to blame, leaving women having to travel up to two hours to give birth.
Mr Burnham told him that, speaking with “honesty… there are structural issues here affecting maternity services across the UK, because this is not the only hospital where there have been difficulties.
“And I am aware, from my former time as Secretary of State for Health, that there have been long-standing shortages of midwives across the country.
“And I believe it is right that we look at all of those issues. But I can give him a guarantee that my right honourable friend, the health secretary, is looking at those issues following the recent paternity reviews that we've had.”
Ed Davey demands Burnham take Britain back into the single market
12:37 , Millie CookeEd Davey has demanded Andy Burnham takes Britain back into the single market, saying it is the "bold step our country desperately needs".
The Liberal Democrat leader said: "The prime minister said yesterday that Brexit ushered in a decade of low growth and stalled regeneration. He is right.
"Our economy is stuck in this mess thanks to the Conservatives and the leader of Reform and their terrible Brexit deal. Unless we grow the economy, there is no way we can end the cost of living crisis or cut the cost of borrowing for the government.
"The answer is staring him in the face: join the single market, get a new deal with Europe and cut costs for families businesses and government. its the bold step our country desperately needs. Will the prime minister take it?"
Responding, Mr Burnham said: "I think he is absolutely right to share the analysis that I laid out yesterday. It's clear the low growth we've had has been partly as a result of Brexit and the sooner the party opposite accepts that the more we can start to face up to Britain's future and where do we go from here."
He added: "I do want a closer relationship, I will build on the work of my predecessor. There are issues facing British farming right now and there are issues facing British steel right now, and the 'Made in Europe' agenda could pose significant problems for British steel.
"So as he will know, we are approaching a UK-EU summit in the next couple of months. It is imperative I believe that we work hard to get a good deal for British steel, for British farming as part of that new deal that he talks about."
Burnham refuses to rule out further tax rises in October Budget
12:30 , Holly EvansAndy Burnham has refused to rule out further tax rises in the October Budget.
When pressed by Kemi Badenoch, who said that “markets are clearly worried that we now have a spendthrift” prime minister, he said: “I’ve already indicated my first moves were to cut tax but I’m not going to do what any Prime Minister has done and is write the Budget here.
“That will be the matter for my Right Honourable friend (Chancellor John Healey). But can I also say to her that he and I took a deliberate decision to set an early date for the Budget so that we reduce the period for prolonged speculation of the kind that she is wanting us to indulge in today.”
Taking aim at Liz Truss’s disastrous mini-Budget, he said: “But can I also say to her and indeed to the whole of her new shadow cabinet, the majority of whom were part of a government that lasted for 49 days, a short-lived government that crashed confidence in the economy, hammered people’s mortgages.
“She took a decision at the weekend, she removed a shadow chancellor who said that the Truss mini-budget was a mistake and she replaced that shadow chancellor with one that helped write the Truss mini-budget and dare I remind the House that the leader of the Opposition is on record as saying that Liz Truss is 100 per cent right?
“What other thing can I say... other than God help us?”
PMQs analysis: Burnham abandons ‘no points scoring’ after six questions
12:24 , Holly EvansOur political editor David Maddox says:
Andy Burnham said he wanted “no points scoring” but under pressure from Tory leader Kemi Badenoch turned on her after just six questions into PMQs.
The prime minister was being pressed on whether he will raise taxes and decided to go after the old line on the Liz Truss government.
He noted that most of the front bench had served in Truss’s 49-day government and that Ms Badenoch has replaced Mel Stride, a critic of Truss’s mini-Budget, with Andrew Griffith, who was a Treasury minister “who helped write that mini-Budget.”
It was a favourite attack line of his predecessor Keir Starmer as well and it did not take long for Mr Burnham to reach for that weapon in the exchanges.
We appear to be back to normal business in politics quicker than Mr Burnham may have hoped.
Watch: Kemi Badenoch congratulates Andy Burnham on stamina after three-hour Commons questioning
12:23 , Holly EvansBurnham insists he will 'fully fund' defence plan to meet NATO target
12:22 , Holly EvansTaking questions on his plan to meet the UK’s commitment to Nato to spend 3.5 per cent of GDP on defence by 2035, Andy Burnham insisted there was “no problem”.
Kemi Badenoch warned him the “honeymoon is over” as she asked about his intentions to fund defence spending.
In answering, Mr Burnham referred to the drone attack on Leipzig airport last month, which the German government has blamed on Russia.
He said: “Can I start with serious point. The German announcement on the attack on Leipzig should unite the House in sending complete condemnation of Russia and complete solidarity in supporting Germany and Ukraine.
“It takes me to defence as the very reason I appointed this chancellor is because of his strong commitment to defence.
“We will fully fund the defence investment plan,” he said. “There is no problem with our commitment to defence.”
Burnham doubles down that Digital ID ‘is not a priority for me or for this government’
12:17 , Kate DevlinThe new PM hit back at Kemi Badenoch as she challenged him over his spending plans.
He told the Tory leader his plans were “fully funded” adding “we made a decision early to be clear about our priorities. Digital ID is not a priority for me or for this government, we reallocated the funding, and we made (other) commitments as a result.”
Digital ID was a flagship policy of his predecessor Keir Starmer, announced by the then-PM with great fanfare last year.
Badenoch presses Burnham on what he plans to cut to fund spending
12:15 , Holly EvansKemi Badenoch has accused the prime minister of spending more money, despite wanting to bring welfare costs down.
The Tory leader said: “Personally I think it’s delightful that he wants to make everyone happy but a Prime Minister needs to be a leader, not a people-pleaser. He’s talking about working together on welfare.
“I already made that offer but that does mean cuts. He wants to bring the welfare bill down by spending more money.”
When asked what has he agreed to cut in terms of spending, he replied: “Well, in terms of ‘what has he cut?’, tax is the simple answer to that question.”
He stressed he had indicated a removal of the VAT on electricity bills and a cut in business rates for pubs and music venues.
PMQs analysis: Burnham’s shows why he is different to Starmer from the get go
12:10 , Holly EvansOur political editor David Maddox writes:
Andy Burnham’s response to Plaid Cymru MP Ann Davies on early release was an immediate example of how he is going to be different to Keir Starmer.
She raised the issue of early releases from Britain’s overcrowded prisons referencing the decision by Mr Burnham to not allow those involved with death by dangerous driving offences out early.
Raising an example from her constituency, she asked for an apology for the previous Starmer government’s actions.
Mr Burnham’s response was not the grumpy, curt style of Sir Keir or going for the throat. He even managed to address the question, something his predecessor often did not do.
But most of all he showed empathy and understanding, explaining why he had changed his mind and looked at the issue again pushing changes.
It shows a distinct change of tone under the new government.
Burnham says he 'pushed to go further' on prisoner early release scheme
12:08 , Holly EvansUpon being asked to apologise to victims and relatives of those who had been distressed by the changes to the prisoner early release scheme, Mr Burnham said he understood the “anguish” of those impacted.
He said he had pushed for more changes after realising that victims and families were not satisfied with the original proposals.
He said: “But hearing those voices I wasn’t satisfied and I pushed the system to go further and as a result of that we are going further and excluding death by dangerous and other manslaughter offences.”
Burnham hails French co-operation to reduce boat crossings
12:04 , Holly EvansAndy Burnham has begun his PMQs by mentioning his upcoming meeting with French president Emmanuel Macron on Wednesday, which will see them visit the Bayeux Tapestry at the British Museum.
He said: “The loaning of the tapestry is a great example of French-British co-operation that has helped us to reduce summer boat crossings to a seven-year low.”
Andy Burnham begins PMQs
12:01 , Holly EvansAndy Burnham has stood up at the despatch box for his first PMQs, which will see him face Kemi Badenoch for the first time.
Pictured: Burnham leaving No10 for PMQs
11:44 , Holly EvansAndy Burnham has been pictured leaving No10 for the House of Commons where he will face Kemi Badenoch at midday for his first PMQs.
Polanski says Starmer by-election will be a 'referendum on ending rip-off Britain'
11:28 , Holly EvansGreen Party leader Zack Polanski has said that the Holborn and St Pancras byelection will be “a referendum on ending rip-off Britain”.
In a statement to mark the first anniversary of his election as Green leader, Polanski said:“The Holborn and St Pancras by election will be a referendum on ending rip-off Britain. Only the Greens have a real plan for real hope and change.
“We will announce our candidate in due course and they will set out an exciting agenda for the deep change our country needs.
“I am proud of what I have achieved in the first year of my leadership of the Green party but it is just the start.
“I am very excited for the next chapter for myself, for the Greens and for people across the country.”
It has not been confirmed if Mr Polanski intends to run himself in the by-election, having previously said he would “almost certainly” stand in a future London by-election.
Nigel Farage breaks parliamentary rules on first day back
11:10 , Holly EvansNigel Farage has broken parliamentary rules on his first day back, after he filmed a video of himself on the roof of the Houses of Parliament.
The Reform UK leader - who resigned and triggered a by-election earlier this summer - was sworn back into Parliament after his Clacton victory on Tuesday.
Within hours of his return, he posted a video of himself to social media shot on the roof of the building.
Permission from parliamentary authorities must be sought before any filming takes place on the estate. But the roof is even more sensitive as a result of its implications for security and personal safety.
It is understood that Mr Farage did not seek permission to record the social media video.
Read the full article here:
Nigel Farage breaks parliamentary rules on first day back
Burnham ally says Budget would have to include spending cuts or tax increases
10:53 , Holly EvansHaving warned on Tuesday that Andy Burnham’s “tone” would have unsettled investors, Lord Jim O’Neill told Times Radio the Budget would have to include either spending cuts or “some form of tax increases” in order to restore the Government’s “headroom”.
Lord O’Neill, an ally of Mr Burnham, suggested the bond markets would “respond favourably” to a Government that takes “credible action to deal with the excesses of the triple lock or the excesses of welfare spending”.
Cabinet Office minister Sally Jameson told Today the Government was “absolutely clear that we will be sticking to the fiscal rules and making sure that we’re controlling public spending” as well as growing the economy.
Andy Burnham has more in common with Liz Truss than he cares to admit
10:29 , Holly EvansUp and down the land, as schools regather, head pupils picked last term before the long break must make their first appearance at assembly and explain to the rest why they were selected.
So, it was in the Commons where the new Chosen One got up to speak and sell himself.
Not that Andy Burnham had to do much convincing.
Behind him, those who anointed the Manc wunderkind cheered him to the creaking rafters.
In case they needed any reminding as to why they’d ditched the previous one and gone for Andy, Sir Keir Starmer chose this day of all days to complete his last U-turn and announce he was quitting as an MP.
Read the full analysis from Chris Blackhurst here:
Andy Burnham has more in common with Liz Truss than he cares to admit
Jimmy Lai’s son tells Burnham: Help save my father, before it’s too late
10:08 , Holly EvansThe son of imprisoned British citizen Jimmy Lai has issued an urgent plea to Andy Burnham to help save his father from a Hong Kong jail “before its too late”.
Mr Lai, the 78-year-old founder of Apple Daily, the city’s most vocal pro-democracy newspaper, was sentenced to 20 years in prison in February on disputed collusion and sedition charges, as part of a mounting national security crackdown on the former British colony by Beijing.
He has reportedly been kept in solitary confinement since his December 2020 arrest, despite mounting concerns for his deteriorating physical health.
In a personal letter to Mr Burnham, Sebastien Lai has demanded an urgent meeting with the PM and has called on him to personally press Chinese President Xi Jinping for his father's release on humanitarian grounds.
Read the full article here:
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Jimmy Lai’s son tells Burnham: Help save my father, before it’s too late
Housebuilding target is 'challenging' but 'we're determined to meet it', minister says
09:49 , Millie CookeThe government's housebuilding target is "challenging" but "we're absolutely determined to meet it", a housing minister has insisted.
Asked whether the government's target of building 1.5m homes by the end of this parliament is going to happen, Sally Jameson told the BBC: "We've we've built hundreds of thousands of homes already.
"Absolutely, it's a challenging target. But I think governments should be setting challenging targets and should be reaching to meet them because people quite rightly have got high expectations of their government and they want to see delivery and they want to see it quick.
"So yes, it's a challenging target, but we're absolutely determined to meet it and take the necessary steps to make sure there are the conditions for houses to be built and houses that are both affordable to people for people to buy, but also to rent privately or social and council houses as well."
Burnham could face first headache on electoral reform after PMQs
09:31 , Holly EvansAndy Burnham invited Labour MPs to Downing Street to woo them over drinks following his turn at the despatch box on Tuesday.
But Labour backbenchers pushing for faster reforms to electoral law could provide Mr Burnham with his first Commons headache on Wednesday, after he has faced Conservative Party leader Kemi Badenoch in his first Prime Minister’s Questions.
Alex Sobel, the Labour MP for Leeds Central and Headingley, is leading calls among backbenchers to establish a national commission on reforming the voting system.
He has tabled an amendment to the Representation of the People Bill, which will be debated in the Commons on Wednesday, calling for the Government to back the move.
Mr Burnham on Tuesday suggested he was open to the idea of electoral reform, but told the Commons that “we will need to get a consensus at the next election” to make such a change.
Banking boss warns Burnham UK 'can't afford' pension triple lock
09:12 , Holly EvansFormer NatWest chairman Howard Sullivan has warned that the UK “can’t afford” the pension triple lock.
He called for the policy to be changed, adding: “If a Government does not grasp that nettle at some point, then I think its credibility is going to be on the rack.”
He said that it would be “helpful” if Andy Burnham gave clear indications of his government’s approach to fiscal spending ahead of the October budget.
He said: “Unfortunately, we do have a circus built around out budgets, which actually does not happen in many other countries.
“There is a whole industry of people… to create expectations and then dash those expectations, and I think we are going to face a very dicky period between now and the Budget.”
He added: “I think we’re going to see a very uncertain period for the next three or four weeks, and it would be helpful if the Government could make some signs about their overall approach to the fiscal balance, which I think could calm things down a bit.”
Former NatWest chairman says Burnham approach causing some market concerns
08:59 , Holly EvansAndy Burnham’s ambitions for overhauling how the UK state operates are likely to be curtailed by the economic headwinds caused by the Iran war.
Government long-term borrowing costs have been sent soaring to their highest levels for 28 years, amid a global bond sell-off partly linked to signs of escalation in the Middle East conflict and the concern that inflation could follow.
While former NatWest chairman Sir Howard Davies told BBC Radio 4’s Today programme on Wednesday that this global sell-off was not “a major crisis of confidence in the UK Government” specifically, he agreed concerns about Mr Burnham’s approach to public spending were causing some market jitters.
Sir Howard said the country faced “a very dicky period” leading up to the Budget on October 28 and called for the Government to “make some signs about their overall approach to the fiscal balance” in order to “calm things down a bit”.
Infected blood victims call on PM to resolve compensation ‘injustices’
08:52 , Holly EvansVictims of the infected blood scandal have called on the prime minister to “resolve injustices” in the compensation scheme.
Between the 1970s and early 1990s, more than 30,000 people in the UK contracted HIV and hepatitis C after being given contaminated blood and blood products.
Campaigners have previously praised Andy Burnham for being a long-standing supporter of contaminated blood victims.
They are now calling on him to take action to speed up payments and resolve issues raised by victims and campaigners – including requests for “unreasonably high standards of evidence” from the compensation body.
Campaigners will hand a dossier of handwritten letters and documents to Downing Street on Wednesday ahead of his first Prime Minister’s Questions.
The Infected Blood Inquiry closed this year after examining what has been dubbed the worst treatment disaster in the history of the NHS.
Minister and ex-prison officer says she is 'absolutely confident' government is taking right steps on prison crisis
08:35 , Holly EvansHousing minister Sally Jameson - a former prison officer - has insisted she is "absolutely confident" the government is taking the right steps to ease the overcrowding crisis in the prison estate.
"I'm absolutely confident that the steps that the justice secretary is taking to make sure that our prisons are stable again are the right ones", she told the BBC.
"But look, this is this is not an easy journey. It wasn't an easy inheritance. We're absolutely determined to make sure it's fixed."
Emmanuel Macron to visit No10 in Burnham's first meeting with world leader
08:28 , Holly EvansAndy Burnham is set to welcome French president Emmanuel Macron to Downing Street next week.
Mr Macron will be the first European leader to visit the UK since Mr Burnham took office.
The visit is another sign the former mayor of Greater Manchester looks set to continue his predecessor Sir Keir Starmer’s policy of a “reset” of relations between the UK and the EU.
On Tuesday, the prime minister’s spokesperson said: "The Home Office has announced today that summer small boat crossings were at their lowest level since 2020 this year, which is evidence of our approach, including that close work with France, and that approach is working. But we're not complacent.
“That's why the Prime Minister is set to discuss this further with with President Macron later in the week, and you'll get a trail tomorrow on that."
Burnham to face first PMQs and test of authority
08:20 , Holly EvansAndy Burnham is to face his first Prime Minister’s Questions, and an early test of his authority over Labour backbenchers, after setting out his plans for Government.
The prime minister made his debut at the Commons despatch box on Tuesday, when he set out plans to devolve more power away from Westminster and into the regions, and to take back public control over utilities and services.
Mr Burnham blamed the legacy of Margaret Thatcher, the austerity era and Brexit for decades of slow growth, and insisted his plans to change the “failed economic model” would kickstart Britain’s economy.
Throughout his three hour and 23 minute Commons grilling, the PM declined to say whether there will be tax rises at the 28 October Budget.
But he suggested that his chancellor John Healey will find money to hike defence spending to 3% of GDP by 2030 by the time of the next spending review.
The Guardian reported that the prime minister told Cabinet on Tuesday that his Government will have three priorities: cutting the costs of essentials such as childcare and mortgages, regenerating communities, and greater public control over utilities such as water, energy and housing.
Minister hits back at Jim O'Neill criticism over government spending
08:06 , Millie CookeA government minister has hit back at some remarks from Lord Jim O’Neill, an ally of the Prime Minister, who suggested that international investors would not have approved of Mr Burnham’s “tone” about “implying a lot more government spending” in the Commons on Tuesday.
Asked about comments, Cabinet Office minister Sally Jameson said she disagreed.
She told Sky News: “I think it’s important we don’t over-read into individual comments people make, because I think Andy Burnham has been really clear that we are going to stick to those fiscal rules rigidly, and that fiscal responsibility is absolutely imperative.”
She added: “We’ve got to have controls on spending, and I don’t think Andy or anyone else has said any different to that.
“But I think the key thing is having growth and bringing optimism back into this country.”
Minister suggests government is not looking at full nationalisation of water companies
08:03 , Millie CookeA government minister has suggested Andy Burnham is not looking at full renationalisation of water companies, instead saying he wants to see more public control.
Asked what the government is looking at doing when it comes to the nationalisation of water companies, housing minister Sally Jameson told Sky News: "I don't think it's about renationalisation as such, its about public control and what's in the interests of people."
Asked what that means, she said: "The buses is the the good example of that, whereby what we've done is a franchising model in certain areas, whereby the local authority or the mayor, they are able to set the price and set the routes, and then commission out that service to private companies who will bid for it.
"So it put the public back in the driving seat again. And what the task force will do will look at other life essentials that the public rely on, and see what more can we do to make sure they're working in the interests of people and not just working in the interests of shareholders and delivering a poor service."
What Burnham said in his first Commons address as prime minister
07:57 , Holly EvansAndy Burnham took aim at the legacy of Brexit, saying it “ushered in a decade of low growth” which the UK is still paying for, as he made his first statement as prime minister to the Commons on Tuesday.
The Makerfield MP listed the “series of wrong turns” the UK has made since the 1980s and warned Brexit had embedded the problems caused by over-centralisation of government, deindustrialisation and privatisation of industry.
He also announced to MPs he will attend the Cop 31 climate summit in Turkey in November, as he pledged to “meet the climate challenge”.
Mr Burnham paid tribute to his predecessor as prime minister, Sir Keir Starmer, who announced he would stand down as an MP on Tuesday.
During a three hour and 23 minute statement, including questions from backbenchers, he hit out at the “failed economic model” which had led to high streets across the country being left desolate.
As he took a total of 125 questions from MPs, Mr Burnham:
– Confirmed that a path to spending 3 per cent of the UK’s economic output on defence, a Nato commitment, will be set out at the next spending review.
– Said he is “prepared to look at” electoral reform, including changes to the voting system, but not before the next general election.
– Committed to bringing forward a Bill which will make sweeping reforms to the leasehold system of ownership, allowing people to move more easily to commonhold “so that finally we can reform this unfair system”.
Burnham will stick 'rigidly' to fiscal rules, minister says
07:53 , Holly EvansAndy Burnham will stick “rigidly” to the Government’s fiscal rules, a minister has said amid rising borrowing costs.
Asked about comments by Lord Jim O’Neill, an ally of the Prime Minister, suggesting international investors would not have approved of Mr Burnham’s “tone” in the Commons on Tuesday, Cabinet Office minister Sally Jameson said she disagreed.
She told Sky News: “I think it’s important we don’t over-read into individual comments people make, because I think Andy Burnham has been really clear that we are going to stick to those fiscal rules rigidly, and that fiscal responsibility is absolutely imperative.”
She added: “We’ve got to have controls on spending, and I don’t think Andy or anyone else has said any different to that.
“But I think the key thing is having growth and bringing optimism back into this country.”
‘Unrealistic’ to fund defence spending increases without hiking taxes of middle earners, think tank says
07:46 , Holly EvansIt is unrealistic for the UK to increase defence spending without higher taxes for middle earners, think tank the Resolution Foundation has said.
Chancellor John Healey resigned from Sir Keir Starmer’s government in June, arguing that the then-prime minister was failing to fund defence properly.
The think tank’s new report Thin end of the wedge looks at how workers’ ‘tax wedge’ – total taxes on earnings minus cash benefits – has changed as a result of decisions taken in 2024’s Autumn Budget.
Its analysis suggests that any politician promising a bigger state and lower taxes on middle earners is not being realistic.
It argues that there is a clear case for paying for increased defence spending through broad-based tax rises that include middle earners paying more.
James Smith, chief economist at the Resolution Foundation, said: “Despite recent increases, the UK still taxes average earners less than most of our international peers.
“No other OECD rich country has a bigger state and a lower burden on average workers, so any politician promising both is not being realistic.
“There is a strong case that any benefits of increased defence spending will be broadly shared, so the tax rises needed to find this should be too, including higher rates on middles earners.’’
