Key facts
- Andy Burnham is projected to become Prime Minister soon.
- He pledged to fund Labour's Defence Investment Plan.
- Burnham rejected immediate welfare cuts, favoring long-term reform.
- He plans to increase business rates on warehouses to fund tax cuts for high street businesses.
- Burnham stated he would not raise income tax, VAT, or national insurance.
Andy Burnham, widely expected to become the next Prime Minister, has outlined his approach to public finances, pledging to fund Labour's Defence Investment Plan while rejecting immediate welfare cuts. In a radio interview, Burnham stated his intention to "take responsibility" for the spending commitments, despite acknowledging potential funding gaps and market concerns about increased borrowing.
Burnham, who previously served in the Treasury and as Mayor of Manchester, expressed frustration with narratives that question his fiscal discipline, pointing to his record. He indicated that his government would move away from "neoliberalism" and "deregulation," aiming to give local communities more control over key industries like water and energy. Regarding taxation, he suggested increasing business rates on warehouses to fund tax cuts for high street businesses, while reaffirming commitments not to raise income tax, VAT, or national insurance.
On welfare reform, Burnham indicated that crude benefit cuts would be avoided. Instead, he proposed a longer-term strategy focused on apprenticeships and improved mental health services to help individuals struggling. He also suggested that Sir Keir Starmer had not fully informed him of the specifics regarding the Defence Investment Plan's funding, though he vowed to meet the pledges.