Kemi Badenoch, a Conservative leader, has challenged Prime Minister Andy Burnham to commit to not raising taxes to fund his recent spending initiatives. Badenoch criticized Burnham for what she described as a daily release of "new expensive ideas" and warned taxpayers of an accumulating financial burden.
Badenoch characterized Burnham as a "people pleaser" whose policies, she suggested, could mirror those of former Prime Minister Liz Truss, whose premiership lasted 44 days. Truss's government also announced significant spending commitments without clear funding plans, a move Badenoch implied Burnham is now repeating.
Since assuming office on Monday, Burnham has introduced several measures aimed at alleviating the cost of living. These include a value-added tax (VAT) reduction on electricity bills, a cap on bus fares, and a decrease in business rates for pubs, clubs, and live music venues. Despite assurances from Burnham and his Chancellor, John Healey, that these measures are "fully funded," questions have been raised about their fiscal basis.
In a speech in London, Badenoch expressed concern that Burnham is planning further costly spending. She specifically cited proposals for a national care service estimated at £18 billion and building council houses at a scale not seen since the 1970s, costing an additional £13 billion. Badenoch also pointed to Burnham's fluctuating public statements regarding the increase of personal allowances as evidence of indecisiveness.
"All we know is that it's going to cost a lot of money," Badenoch stated. "So I want to be very clear: Andy Burnham needs to rule out tax rises to pay for his spending spree."
Badenoch also cautioned Burnham against repeating the fiscal policies of Rachel Reeves, whom Burnham dismissed as Chancellor on Monday. She asserted that Reeves's tax increases led to employers reducing hiring and job losses. Badenoch argued that if Burnham raises taxes, he would "punish the engineer whose factory is never built, punish the apprentice whose job never exists, punish the family whose bills rise yet again." She emphasized that "money needs to be made before it can be spent" and that "businesses are not cash machines for politicians."
When asked if Burnham risked becoming "Labour's Liz Truss," Badenoch alluded to a previous budget she claimed was not balanced, with spending exceeding funding. She stated, "Liz Truss wanted to pay £150 billion of energy bills, but hadn't said where the savings would come from." Badenoch called for Burnham to outline his funding sources, stressing the need for "common sense" and a concrete plan.
A spokesperson for the Labour Party responded by stating that Burnham is "bringing back hope after Kemi Badenoch's Tory Party nearly broke Britain." The spokesperson defended Burnham's actions, asserting that his policies offer families breathing room during the cost of living crisis and criticized the Conservative Party's approach as a "recipe for disaster."