Key facts
- Andy Burnham, set to become UK prime minister on July 20, pledged to find billions to close a defense funding gap.
- The Defence Investment Plan (DIP) announced by outgoing PM Keir Starmer committed an extra £15 billion for the armed forces but left a £4.7 billion shortfall.
- Burnham stated he will 'take my responsibilities fully' to fund the DIP, emphasizing no compromise on national security.
- He is considering a tax rise on warehouses and major developments while cutting business rates for pubs and high street businesses.
- Burnham plans welfare system reforms without crude benefit cuts and will adhere to Labour's pledge not to raise income tax, national insurance, or VAT.
- Burnham intends to establish 'No. 10 North,' an outpost of 10 Downing Street in Manchester.
Andy Burnham, who is poised to become Britain's prime minister on July 20, has pledged to allocate billions of pounds in his upcoming budget to address a defense funding shortfall. Burnham stated he was unaware of the £4.7 billion gap in his predecessor Keir Starmer's Defence Investment Plan (DIP) until after it was announced.
Burnham assured that he would 'take my responsibilities fully' to fund the DIP, emphasizing the importance of national security. This commitment is expected to reassure military leaders but will likely lead to speculation about potential tax increases, spending cuts, or adjustments to borrowing rules in the budget, anticipated for October or November.
In an interview, Burnham revealed he is considering raising business rates on warehouses and large developments while simultaneously reducing rates for pubs and other high street businesses like bars, restaurants, coffee shops, and hairdressers. He also indicated a need for welfare system reform but stressed he would not implement 'crude' cuts to benefit entitlements. Burnham reiterated Labour's 2024 manifesto commitment not to increase income tax, national insurance, or VAT.
The selection of his finance minister remains undecided amidst internal party divisions, particularly concerning Ed Miliband, the current energy secretary. Burnham expressed frustration with Westminster's focus on personalities over policy and announced plans to establish 'No. 10 North,' an outpost of 10 Downing Street in Manchester, to centralize powers related to utilities, regeneration, and reindustrialization.
Burnham also commented on parliamentary procedure, suggesting the whipping system should not be used to 'punish' MPs, and expressed willingness to collaborate with opposition parties on tackling gang-related issues. He acknowledged avoiding extensive interviews recently but defended his approach to setting out a new direction for the country.