‘Andy wants to spend, spend, spend’: No 10 and Treasury split over Budget

Tony Blair and Gordon Brown, Margaret Thatcher and Nigel Lawson, Boris Johnson and Rishi Sunak – the relationship between the Prime Minister and their Chancellor has been one of the most combustible double acts in British politics for decades.

And it appears Andy Burnham and John Healey have not taken long to discover the same old tensions for themselves.

Just weeks into the new government, the Prime Minister’s ambitions for a sweeping programme of spending and reform are already running up against a Treasury demanding fiscal restraint.

Physically, No 10 and No 11 Downing Street are separated by little more than a few footsteps.

The UK is running low on diesel – how worried should we be?

Britain could see shortages of diesel with prices at the pump soaring to all-time highs of £3 a litre if Donald Trump bans US exports, analysts have warned.

LONDON, ENGLAND - MARCH 9: A person fills their car with fuel at a petrol station in Victoria on March 9, 2026 in London, United Kingdom. Fuel prices remain volatile as peace talks have stalled between the US and Iran in recent weeks. As a result, traffic through the Strait of Hormuz continues to be restricted, impacting the global supply chain of around one fifth of the world's petroleum. In the face of rising costs of fuel, the UK government has eased sanctions on Russian oil and liquefied natural gas (LNG) with a trade license that allows the import of Russian jet fuel and diesel refined in third countries, as well as the shipping of some LNG from Russia. (Photo by Alishia Abodunde/Getty Images)

Britain relies on US oil

Premium gasoline prices above $6 per gallon and diesel fuel prices above $7 a gallon are displayed outside of a Shell gas station in West Hollywood, California on April 14, 2026. The US Treasury Department said on April 14 that it does not plan to renew a temporary easing of sanctions on Iranian oil that aimed to ease war-related supply shocks. (Photo by Patrick T. Fallon / AFP via Getty Images)
  • Trump is said to be considering a 90-day export ban in weeks, after diesel in America hit a record average of $6.52 (£4.93) a gallon.
  • Britain relies on the US for about 30 per cent of its diesel imports.

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Shortages could hit UK pumps in weeks

  • Britain has just four operational refineries – down from 18 in the 1970s – leaving the UK with around 42 days of emergency stockpiles, Sky News reported.

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Trucks and cars off the road

A lot of trucks would come off the road. You wouldn’t be able to fill them. We’d start seeing delays in goods being transported around the UK.

dr pauline swift, charity chair,
blood pressure uk
File photo dated 18/04/25 of motorway traffic on the M5 motorway near Burnham-on-Sea, Somerset. The average age of cars on UK roads has reached a record high of nearly 10 years, sparking environmental fears. Issue date: Wednesday August 6, 2025. PA Photo. Motoring research charity the RAC Foundation, which conducted the research, said drivers are benefiting from the improved "build-quality" of modern cars, but this is "bad news for the environment" as it is slowing the switch to electric models. Photo credit should read: Ben Birchall/PA Wire

UK turning to alternative suppliers

The Government would have to bring in measures to destroy demand to bring prices down, James Noel-Beswick, head of commodities at Sparta Commodities said.

Though Thomas Pugh, chief economist at the audit, tax and consulting firm RSM UK, say the UK wouldn’t necessarily see a diesel shortage as alternative suppliers exist.

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Mar de nubes sobre los Picos de Europa al atardecer

British climber falls
to his death on
Spanish mountain

A British climber, 28, has fallen to his
death on a Spanish mountain, according
to local authorities.

Emergency responders were alerted to
the incident on Torrecerredo mountain – Spain’s 17th highest peak – at roughly
1:30pm yesterday.

What we know so far:

  • According to , the man was a 28-year-old from England and fell up to 60 metres from the peak of Torrecerredo in the Picos de Europa in northern Spain.
  • Local reports also added that he was 20 metres below the summit when the accident happened.
  • A doctor mobilised by a regional emergency response coordination centre confirmed around an hour later the Briton had lost his life in the accident.

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Remains transported to Llanera

A forensic search had been carried out of the area and his belongings were recovered.

His remains were transported to La Morgal,
a regional sports, aviation and emergency services complex, in Llanera near the Asturian cities of Oviedo and Gijon.

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What remains unclear:

Urrieles or Central massif in Picos de Europa, Spain
  • It is not clear whether the unnamed man had been alone or accompanied by family or friends.
  • Although one local report said
    he was near the summit when he fell, another said he was on his
    way down.

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The three ways Healey could soften energy price rises

Newly appointed Chancellor of the Exchequer John Healey gives his first all staff address at HM Treasury in central London. Picture date: Tuesday July 21, 2026. PA Photo. Photo credit should read: Stefan Rousseau/PA Wire

Ministers are drawing up plans for targeted help with energy bills in next month’s Budget amid fears the Iran war will lead to a cost of living crisis for millions this winter, it has been reported.

Chancellor John Healey has told officials to come up with options to soften the blow from energy price hikes.

Gas and oil prices spiral

Wholesale gas prices have risen by more than 150 per cent since the start of the Iran conflict, while oil has increased by more than 40 per cent, according to figures compiled for the Government.

This is a generic photo of coins on top of an energy bill letter. See PA Feature FINANCE Energy Cap. WARNING: This picture must only be used to accompany PA feature FINANCE Energy Cap. PA Photo. Picture credit should read: Alamy/PA. NOTE TO EDITORS: This picture must only be used to accompany FINANCE Energy Cap.
FILE - People march while taking part in a protest against the U.S.-Israeli war with Iran, and against conflict in Lebanon, Wednesday, April 8, 2026, in New York. (AP Photo/Ryan Murphy, File)

Energy bills could be more than £600 higher next year than when Labour came to power, despite its pledge to cut them by £300 by the end of the decade.

Existing cost relief

  • 1Ministers have already announced plans to remove VAT from domestic electricity bills for six months from 1 October, saving households about £45 a year.
  • 2Then there’s the warm home discount, which gives £150 off bills to almost six million households receiving means-tested benefits.
  • 3Plus, the £1bn crisis and resilience fund, which is administered through councils.

Pressure mounts as costs rise

Ministers are keen to examine more targeted intervention, reported. But any additional energy relief packages would add to the pressure raise money at the Budget via taxation.

Clare Lombardelli, a deputy governor at the Bank of England, warned on Thursday that an interest rate rise was “increasingly likely” if energy prices remained elevated.

(FILES) Pedestrians walk past the Bank of England in central London on February 5, 2026. The Bank of England announced on September 17, 2026 it would leaves interest rates unchanged at 3.75%. (Photo by Ben STANSALL / AFP via Getty Images)

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Healey’s options:

  • Ministers could prolong the temporary VAT cut beyond March.
  • The Chancellor is also understood to be prepared to reduce the fiscal £23.6bn “headroom”.

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Walkers reveals three new crisp flavours

Three new “gold” flavours of Walkers are now available for crisp lovers. The new snacks mark the brand’s biggest revamp in 80 years.

Leicester, England - October 16, 2014: Close up of a group of different bags of Walker's Crisps.

What are the flavours and how much are they?

Walkers has joined in on the truffle trend with its brand-new Black Truffle crispsCredit: Ocado

The new flavours are black truffle, sea salt and olive oil and Somerset mature cheddar and onion.

Each pack is branded as “Premium Potato Crisps”.

The Sea Salt & Olive Oil crisps add a simpler taste to the new line-upCredit: Ocado
The Somerset Mature Cheddar & Onion crisps offer a premium twist on the classic Cheese & OnionCredit: Ocado

The crisps come in 140g bags and can currently be bought for £2 each.

Where you can buy them

The entire range launched on Ocado officially today, but from October 12, they will be widely available in major UK supermarkets for a cheaper price of £1.50.

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Record number of assaults on Britain’s trains – what to know

Assaults on Britain’s railways have hit record levels, new figures from the Office of Rail and Road (ORR) have revealed.

February 8th. 2024. A diesel powered passenger commuter train stops at Hatton Station Warwickshire England UK. It is a bright day and there are no visible people in the picture.

The numbers

The data published on Thursday showed there were 13,464 reported assaults on people who were not railway workers between April 2025 and March 2026, an increase of 36 per cent compared to the previous year.

Avanti Pendolino departing Crewe station as a member of platform staff watch the train leave.
  • 11,289 assaults on rail workers on mainline networks were also recorded, an increase of 12 per cent. This included 6,390 incidents of verbal abuse, 2,487 physical assaults and 2,412 threats.

Working to make railways safer

No-one on the railway should be subjected to violence, threats or abuse. We’re working with industry and our trade union colleagues to address work-related violence and harassment, including through recent guidance which sets out what we expect from rail employers.

Richard Hines, ORR’s chief inspector  railways
London/ UK, Sept. 2017 - Rush hour at Liverpool Street Station/ London

The Reform MPs who face losing their seats according to new poll

Robert Jenrick and Suella Braverman are among four Reform UK MPs who would lose their seats if a general election were held tomorrow, fresh polling by YouGov shows.

Falling behind the Tories

Tory defector Danny Kruger and Sarah Pochin – who beat Labour in a 2025 by-election – would also be unseated, according to the leading UK pollster’s first large-scale election modelling since Andy Burnham became Prime Minister.

LONDON, ENGLAND - AUGUST 11: Reform MP Sarah Pochin speaks at a Reform UK Press Conference in Westminster on August 11, 2025 in London, England. Female Reform UK members including Mayor of Greater Lincolnshire Andrea Jenkyns and Reform MP Sarah Pochin are holding a press conference on crimes that affect women as part of their summer Crime campaign. (Photo by Dan Kitwood/Getty Images)
Former Conservative MP Danny Kruger, who has defected to Reform UK, speaking during a press conference in Westminster, central London. Picture date: Monday September 15, 2025. PA Photo. Photo credit should read: James Manning/PA Wire

Although the party’s numbers of MPs would hugely increase, it would have fewer seats than the Tories overall, marking a significant fall when compared to last year’s polling.

How a Labour government could be formed

The poll predicts that Labour would be the biggest party in a hung parliament.

Lib Dem leader Ed Davey recently ruled out forming a coalition with Reform or the Tories but stopped short of excluding a coalition with Labour.

However, to form a Parliamentary majority in this scenario, Burnham would also need to work with the SNP or Plaid Cymru.

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Reform expanding its operations

The polling comes as Reform is preparing a huge expansion of its operations around the country, targeting London, the South East, the South West and the East of England.

BIRMINGHAM, ENGLAND - SEPTEMBER 05: Reform UK Party Leader Nigel Farage speaks to Jeremy Kyle on the second day of the Reform Party conference at National Exhibition Centre on September 05, 2026 in Birmingham, England. Reform UK enters its September 2026 annual party conference facing a recent dip in opinion polls, dropping to 22%???23% in national voting intention after peaking at 28% in May. For the first time in over 18 months, the party has slipped behind the Conservatives into third place in select polling, squeezed by a resurgent Labour Party under Prime Minister Andy Burnham and new competition on the right. (Photo by Anthony Devlin/Getty Images)
  • Analysis of Reform job adverts by The i Paper suggests the party is pumping resources into areas where it wants to keep its high-profile Tory defectors.

There’s turmoil in the Liberal Democrats. And MPs are struggling for direction

Stagnant in the polls but still a potential kingmaker, the party’s at a crossroads – even its own members are asking what comes next.

How to be more grateful for daily life in five easy steps

The world feels like a difficult place at the moment, and it can feel very hard sometimes to find things to be thankful for; when we are overwhelmed, we have less capacity to notice and reflect on the good things. Yet, ironically, proactively cultivating gratitude is one of the things that can actually help us feel less stressed.

NHS GP dR RADHA

The science

Research has shown that feeling or expressing thanks can actually alter our brain.

  • The balance of neurotransmitters change; more serotonin and dopamine (feel good chemicals) are produced.
  • This can be long lasting if we make gratitude a regular habit.
  • We also get a decrease in our cortisol (stress hormone) levels which helps lower anxiety.
  • Being grateful can strengthen the nerve pathways which triggers positive emotion.

How can we build gratitude?

Two adult brothers enjoy a warm embrace in a sunny park. They stand beside a decorative fence surrounded by lush greenery, showcasing a strong bond and happiness in the moment.

Change your words

Instead of seeing something as a problem, try to see the opportunities within it. 

Our brains are very receptive and what we read or write can alter our emotional system.

Caucasian mid adult patient writing a diary while recovering in the hospital ward - stock photo

Express it

This will not only make you feel good, but you will also get a positive response from others.

How can we build gratitude?

Notice more

Throughout your day, try to notice all the things that are going well; has someone opened a door for you, or smiled?

Happy woman spending leisure time with friends at sunny day. Multiracial females are talking with each other. They are wearing sports clothing.
Group of Happy Asian senior women friends shopping and having lunch at restaurant on summer holiday vacation. Healthy elderly woman enjoy outdoor lifestyle meeting and eating food together.

The basics

By being thankful for the small things every day, we are far more likely to be and stay healthy so that we can enjoy them.

What to do

Gratitude can lead to feelings of optimism, lower our blood pressure, and improve sleep quality. 

  • Write down what potential good aspects there are to the things you don’t feel like doing, or even what could be worse about it.
  • Spend a few minutes writing down three things that you are looking forward to that day, or the good things that have happened to you that day.
  • Say thank you to yourself for the things you have achieved, or managed to get through and changed that day.

Sales of battery
electric vehicles hit a record high last year.

Starts at £22,995 for the smaller battery

Available with either a 40kWh battery or a larger 52kWh pack, that offers almost 255 miles, the latest, retro-inspired Renault 5 is both a joy to behold and a hoot to drive.

The interior has been lavished with a level of detail that’s typically reserved for more expensive cars. 

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A champion of EV efficiency

It offers a remarkable 491 mile range on a single charge from the 85kWh battery.

It is a technological masterclass inside with the ability to option screens that span the entire width of the dashboard, including an optional display for the front passenger.

Priced from £37,400

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It’s a lot of money to part with, but this is arguably all the car you will ever need.

The £89,000 Macan is a premium SUV that somehow manages to blend Porsche’s reputation for dynamics and sporty driving with everyday practicality.

The 95kWh batteries can go from 10 to 80 per cent in as little as 21 minutes from the fastest public charging outlets.


With the business class-style six seat configuration costing a staggering £76,995, it is by far the most expensive Kia ever made, but it backs up its financial demands with a suite of genuinely useful and impressive onboard technology.

It’s fast, goes a long way between stops and charges relatively quickly but the interior is bland, the onboard technology is infuriating and the experience is devoid of emotion. 

All of its gadgetry can’t disguise the fact that performance is weak, even for a typically zippy EV, the ride is fussy at slower speeds and it’s not in the least bit enjoyable to drive on a country road.

  • While good value (prices start at £17,935) for the 200-mile max range, there are more interesting options from Hyundai, Citroen and Renault for similar money.
  • It attempts to wow with tech, much of which hinders, rather than helps. 
  • There’s no tangible benefit over mounting your phone to the dash.
  • Simply an average driving experience, adequate range and slow charging speeds. 

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Politically, the two occupants can often find themselves a world apart.

Senior Whitehall sources say No 10 and No 11 are at loggerheads over the Budget, due on 28 October.

“There are definite tensions there,” said one source. “Andy wants to spend, spend, spend on this and that and the Treasury has been left trying to find the money.”

It might have been easier had not the current incumbents followed Sir Keir Starmer and Rachel Reeves onto the national stage. Healey quit as defence secretary, helping to push Starmer out of No 10, because Reeves wouldn’t spend enough on re-arming Britain.

Burnham replaced Starmer on a wave of feel-good intentions to ease the cost of living crisis for millions.

But while the faces at the top have changed, economic realities have not. If anything, with the war in Iran, they have got worse.

Hence the tension between the new Chancellor, who wants to control spending, and the Prime Minister, who is also First Lord of the Treasury, who wants to control spending while also being able to spend.

Another source familiar with the discussions between Nos 10 and 11 also acknowledged friction, attributing it to the pressure on the Chancellor’s fiscal headroom – essentially the spare cash to pay for emergencies – following a surge in the cost of government borrowing, which eats into that safety buffer.

A tricky economic situation

New analysis from KPMG earlier this week suggested that Healey’s room for manoeuvre could have fallen to about £12bn, down from the £23.6bn headroom inherited from Rachel Reeves. It’s a big figure, but in terms of the UK Budget, it is peanuts.

The economists said that, to maintain the larger buffer – regarded as important to maintaining confidence in the Government’s finances, and so keep the cost of borrowing down – Healey is under pressure to increase taxes or cut spending.

That puts the Chancellor in an increasingly difficult position – especially in light of the intense personal pressure on him to raise defence spending.

While the party faithful gather in Liverpool this weekend for Labour’s annual conference, Healey will be putting the finishing touches to his Budget.

Burnham’s message to conference – his first as Prime Minister – will be one of hope and change.

“The message will be it’s time for Britain to believe again, it’s time for Britain to have hope again,” he has said.

But behind the optimism lies a much more difficult political calculation.

Burnham has already signalled that there will be no tax bombshell in the Budget, marking a clear departure from Reeves’s approach.

The former Chancellor raised taxes by around £66bn across her two Budgets, including higher employer national insurance, changes to capital gains tax and inheritance tax, as well as VAT on private school fees.

The changes mean the UK is now facing its highest tax burden since the early 1950s, with the tax take forecast to hit a new record high in the years ahead.

Ministers face difficult choices

Observers also blamed national insurance on stifling growth – and therein lies the dilemma. The best way to increase tax receipts without increasing taxation is to grow the economy. But this is easier said than done, and in the short term raising taxes to fill a financial hole can hold back growth.

Asked on his way to the UN General Assembly in New York last week whether he believed the right balance had been struck between taxing wealth and taxing income, the Prime Minister said: “We have two budgets in 2024 and 2025 and we have to be conscious of the extent to which we have raised revenue. And we have to make sure we get the balance right.”

Pressed on whether the balance was right, Burnham declined to say more.

“These are matters for the budget,” he said.

Few close to the Chancellor would deny that this is going to be a very difficult Budget as he seeks to balance the books while sticking to the self-imposed fiscal rules that borrowing must fall and day-to-day expenditure must be met through tax income.

Healey has already told Cabinet colleagues that there is no money and that anything they wish to spend will have to come out of their existing budgets.

But a senior Whitehall source said departments had already made “rigorous spending efficiencies” and warned that further savings would be difficult without compromising some of their top priorities, ie cuts.

That leaves ministers facing difficult choices across almost every major area of Government.

How rethinking the Chagos deal could help

One of the biggest costs on the UK’s finances is welfare, coming in at an expected £322bn this year – almost a quarter of spending.

According to those familiar with the discussions, there are unlikely to be significant welfare savings this Parliament – even if primary legislation is introduced next year following the Timms review of disability benefits and Alan Milburn’s review of youth economic inactivity, which is examining how to get more young people into work.

Defence spending presents another problem, and there is still no clear path to reaching 3 per cent of GDP on defence by 2030 – a move the Office for Budget Responsibility (OBR) has previously estimated would require an additional £17.3bn a year by 2029-30.

Healey has, however, told allies that he has found the £4.7bn still needed to fund the Defence Investment Plan, the funding gap at the heart of the defence settlement over which he resigned as defence secretary in June.

However, even some of his closest Cabinet allies have not yet been told how he has plugged the gap.

One potential source of savings is the controversial Chagos Islands agreement, in which the UK will hand over sovereignty of the islands to Mauritius and lease back the military base on Diego Garcia for 99 years at a cost of £101m a year.

One idea put forward is to return sovereignty over the islands to the Chagossians while having the US pay for continued use of Diego Garcia as a military base. That would replace the existing treaty, under which sovereignty passes to Mauritius and Britain retains a 99-year right to operate the base.

The Government says the Chagos deal will cost £3.4bn in today’s money. But because payments would continue for 99 years and be linked to inflation, the eventual nominal cost could be considerably higher.

The deal has now effectively been put on hold after Donald Trump rejected it, while Defence Secretary Wes Streeting said this week that payments to Mauritius would not be made “at this stage” and that the agreement cannot proceed without US support.

Mansion tax rows

Tax is another area where the pressure is beginning to show.

Labour is considering lowering the threshold for its planned mansion tax from £2m to £1.5m, potentially bringing around 160,000 additional homes into the net and raising as much as £800m a year, according to estimates.

The proposal is not yet agreed and the Treasury has described reports as speculation.

Four London councils have urged Healey to rethink the tax, while Labour MPs have also raised concerns about its impact on families and London homeowners.

One senior Labour insider described the proposals as “bonkers”, adding: “The Labour Party would lose London for a generation.”

And the arguments over money are not confined to domestic policy.

Fundamental problem

All of which leaves the Government with a fundamental problem: Burnham has promised a programme of renewal and reform, but Healey is having to operate within increasingly tight financial constraints.

Burnham’s allies have claimed that he and his Chancellor did not know how bad the public finances were until they took office.

However, the Prime Minister disputes this. “It’s not the case that we were surprised,” he said. “I was in access talks and understood very clearly the position.”

But Burnham argues that the economic circumstances subsequently changed – particularly as a result of the situation in the Middle East.

“The truth of the matter is that because of the situation in the Middle East, the position changed, and has changed over the time I’ve been in,” he said. “That’s just the reality of the situation that we’re in.”

For now, Burnham can put the arguments over money to one side and offer Labour members the optimism they have been waiting to hear.

But the real test of the new Government’s ambitions will come just weeks later, when Healey delivers his first Budget and reveals how much of that ambition can actually be afforded.

Original source ‘Andy wants to spend, spend, spend’: No 10 and Treasury split over Budget

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