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.
Analysis: Burnham shows why a change was good for Labour
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
The 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
Kemi 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
While bond yields are rising globally, the UK version, known as gilts, spiked on Tuesday into Wednesday, rising the fastest among G7 nations.
PM says he supports 'broken window' policy in tackling crime
When 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
There 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
Ed 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
Andy 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
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.