Burnham says budget constrained by geopolitical tensions and Labour manifesto
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Prime Minister Andy Burnham acknowledged that external crises and the party's 2024 manifesto limited the scope of his first budget, despite plans for more radical reforms.
Prime Minister Andy Burnham told ITV that the first budget he delivered was less radical than he had hoped because of economic uncertainty and external events such as the war in Iran, which raised borrowing costs. He said the "room for manoeuvre wasn’t what I would have hoped it to be" and that the government had to work within those constraints.
Chancellor John Healey announced a series of low-cost measures, including a £100 payment to most households to help with winter energy bills. Burnham described the payment to 20 million households as "quite a significant step" but acknowledged that a larger payment would have been preferable.
The prime minister also indicated that he intends to pursue major welfare reforms in the coming months, aiming to reduce the number of young people claiming benefits. He said any changes would avoid "brutal cuts" that could push people into "absolute crisis" and emphasized that benefits should only be needed for those unable to work due to disability or other reasons.
Burnham, who entered office promising to end "40 years of neoliberalism" and to introduce higher taxes on wealth and utility nationalisation, said the current Labour 2024 manifesto limited options such as raising income tax, national insurance or VAT. He added that he would seek a new mandate before pursuing those policies.
Opposition leader Kemi Badenoch criticised the budget, suggesting many listeners might wonder "is that it?".