Kemi Badenoch, the Conservative leader, has accused Andy Burnham of initiating a "spending spree" with early policy promises, suggesting he is governing as if he were still mayor and has not adequately explained the funding for these measures.
Burnham’s initial policy announcements include restoring a £2 cap on bus fares in England and reducing the Value Added Tax (VAT) on household electricity bills. He has also outlined plans to cut business rates for pubs and live music venues and secure more accommodation for individuals experiencing homelessness. These interventions are projected to cost approximately £1.8 billion in total.
Burnham stated in a cabinet meeting that the administration needs to prioritize being a "cost of living government" and described his policy blitz as a first step to provide people with "breathing space." He indicated that further support would be announced alongside broader tax and spending decisions.
The government asserts that these plans are accounted for through a combination of savings, reallocation of funds within existing budgets, and future tax increases on "anti-social businesses."
However, speaking in London, Badenoch questioned the source of Burnham’s proposed savings and urged him to rule out tax increases in the upcoming autumn Budget. "Every day, Andy Burnham seems to float a new, expensive idea," she said. "We have seen this movie before. Tax rises are coming."
Badenoch further suggested that the new prime minister needs to "lift his sights" to address more significant issues within the UK. The Labour party has defended Burnham's announcements, asserting that he is "bringing back hope after Kemi Badenoch's Tory Party nearly broke Britain."