Key facts
- New UK Prime Minister Andy Burnham blamed the previous Conservative government for the nation's economic vulnerability.
- Burnham stated his administration will prioritize fiscal responsibility and adhere to fiscal rules.
- UK borrowing costs have surged, with 10-year bond yields at an 18-year high and 30-year yields at an 18-year high.
- Opposition leader Kemi Badenoch challenged Burnham on his spending plans and how they would be funded.
- Burnham defended his early actions, citing tax cuts on energy bills and business rates.
Andy Burnham, in his first Prime Minister's Questions since taking office in July, defended his government's fiscal responsibility amidst rising UK borrowing costs. He attributed the current economic vulnerability and market turbulence to the legacy of the previous Conservative government, including policies from the Thatcher era. Opposition leader Kemi Badenoch challenged Burnham on his spending plans and how they would be financed, questioning whether taxes would rise. Burnham countered by highlighting recent tax cuts and criticizing the Conservative opposition's association with the Truss government's economic policies. The yield on 10-year government bonds has reached an 18-year high, and 30-year yields are at an 18-year high, increasing the cost of government borrowing.