Conservative leader Kemi Badenoch has criticized Prime Minister Andy Burnham's early policy initiatives, stating they are "too small" to address the nation's challenges and questioning their financial viability.
In her first public statement since Burnham took office, Badenoch accused the new Prime Minister of "still thinking like the mayor of Manchester." Burnham's initial proposals include reducing energy bills by £45 and reinstating a £2 cap on bus fares. However, ministers have struggled to detail how these plans will be financed, despite Burnham's assertion that they are "fully funded."
Former Cabinet minister Darren Jones dismissed claims that the £850 million plan to cut VAT on electricity bills could be funded by scrapping the digital ID card scheme, noting that funding for the ID system had not been approved. Transport Secretary Heidi Alexander acknowledged that the funding for the £454 million bus fare cap plan "hasn't been worked through."
Badenoch plans to urge Burnham to rule out tax increases to finance his spending plans. While welcoming his focus on the cost of living, she stated that his "piecemeal approach" is insufficient.
"He needs to lift his sights, because the world will not wait for Andy to get his act together," Badenoch is expected to say. "Going by what he’s announced so far, Andy Burnham’s ambitions for Britain are too small. Real problems need bigger, long-term solutions."
She argued that rising costs for fuel, energy, employment, and regulation are the root causes of economic pressure, and that capping one price "and send[s] the bill somewhere else" ultimately leads to higher taxes for individuals and businesses.
A £2 cap on bus fares was initially introduced by the Conservative government in 2022. The cap was later raised to £3 under the Keir Starmer and Rachel Reeves administration. Burnham stated that lowering the cap would provide families with more "breathing space" during the cost of living crisis, emphasizing that "good, affordable transport links are an essential."
Officials indicated the bus fare cap would be partially funded by reallocating £400 million from grants for climate change projects in developing countries. These net-zero projects are still expected to proceed, but will be financed through loans, though repayment timelines and interest rates remain unclear. Alexander stated, "The detail will need to be worked out. We wanted to make the announcement today..."
Burnham, speaking to broadcasters, defended his funding approach, stating he "will always be honest with the public" and that his announced policies – ending rough sleeping, the bus cap, and removing VAT from electricity bills – are "all fully funded." He attributed this to "reprioritising" to address public concerns about the cost of living.
Burnham is scheduled to visit Scotland to meet with Scottish and Welsh leaders and attend the Commonwealth Games opening. He intends to convey that he is not focused on granting a second Scottish independence referendum, prioritizing "practical measures to help people live well and bring back hope."