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Conservative leader Kemi Badenoch confronted Prime Minister Andy Burnham during his inaugural session at Prime Minister’s Questions, pressing him on the UK’s borrowing and spending plans. Her queries were driven by recent concerns over the UK’s rising debt, especially after borrowing costs hit an 18-year peak. Badenoch demanded clarity from Burnham about where spending cuts would be made and how he intended to manage the growing financial burden.
Burnham, who assumed office in July after succeeding Sir Keir Starmer shortly before Parliament’s summer recess, faced Badenoch for the first time in the Commons. During the recess, the prime minister had traveled across the country, unveiling a series of policies primarily focused on easing the cost-of-living crisis. After Parliament resumed on Tuesday, Burnham spent considerable time addressing MPs, giving statements and answering questions. Despite laying out multiple spending proposals, Badenoch criticized him for not explaining how these initiatives would be funded, accusing him of being a “spendthrift prime minister” encouraging promises without accounting for the financial consequences.
In response to questions about potential tax increases, Burnham highlighted that he had already introduced tax reductions, such as cutting VAT on energy bills and lowering business rates in hospitality. He declined to detail the Budget at that moment, noting that he and Chancellor John Healey had planned an early October Budget to avoid speculation. Badenoch also raised comments from Lord Jim O’Neill, a noted economist and cross-bench peer who had been considered for a key economic advisory role but ultimately declined to join Burnham’s government. Lord O’Neill had commended Burnham’s initial weeks in office for boosting confidence, while warning that the recent spike in government debt interest rates would necessitate addressing pension policies and excessive welfare spending.
Burnham defended his government’s fiscal approach, emphasizing a commitment to responsible financial management and adherence to fiscal rules, while simultaneously offering relief to citizens facing cost-of-living challenges. The rising yields on UK government bonds—reaching levels not seen since 2008 and 1998 for 10- and 30-year bonds respectively—signify increased borrowing costs that could limit government spending options as the Budget draws near. Badenoch seized on Lord O’Neill’s warning that Burnham’s tone in the Commons unsettled investors, using this to question how the prime minister planned to manage the escalating debt costs. Burnham responded by criticizing Badenoch’s shadow cabinet reshuffle, highlighting the return of former Conservatives linked to the brief and damaging Truss administration, and pointing out the internal contradictions in their economic policies
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