Prime Minister Andy Burnham faced immediate pushback in his first parliamentary statement since taking office, attributing Britain's current economic difficulties to policies enacted by Margaret Thatcher and the decision to leave the European Union.
Burnham, leading a Labour government, acknowledged that life remains "too expensive and too hard for too many" two years into the administration's term. He articulated a vision for greater state intervention, emphasizing a commitment to taking more control over nationalized utilities such as water and energy. He also proposed a new wave of devolution as a driver for economic growth.
However, his remarks drew criticism from opposition leader Kemi Badenoch, who accused Burnham of "living in the past" and blamed Labour's previous tax policies for damaging the economy. Badenoch suggested that Burnham's plans would move the country backward and urged him to reduce the financial burden on families and businesses.
Burnham directly referenced the impact of policies from the 1980s, stating, "From the 1980s, this country took a series of wrong turns." He detailed these as the centralization of political power, privatization of economic power, deindustrialization, and austerity measures that he argued hollowed out local government. "And then Brexit compounded the damage, ushering in a decade of low growth and stalled regeneration," he added.
He reiterated his administration's intention to increase state control over water and energy sectors, describing the privatized water industry as a "leaking monument" to Thatcher-era approaches and a symbol of prioritizing private over public interest. Burnham also indicated a willingness to work with the Liberal Democrats to reform the first-past-the-post voting system and expressed concern over plans to discontinue Freeview TV services, suggesting the idea could be scrapped.
The Prime Minister's debut in Parliament, which returned from its summer recess, was marked by a nearly four-hour session where he fielded numerous questions. He outlined a "triple helix theory of economic development," involving universities, government, and business, though details on implementation were sparse. He also did not rule out further tax increases in the upcoming budget or significant cuts to the benefits system, citing concerns about runaway costs threatening public finances.
Burnham's stance on Brexit suggests a potential shift from his predecessor, Keir Starmer, indicating a willingness to re-evaluate the 2016 decision. He is expected to discuss the issue with French President Emmanuel Macron during upcoming talks.
Meanwhile, economists have issued warnings about potential tax hikes, noting a £6 billion hole in public finances attributed to turmoil in bond markets. The political landscape saw former Labour leader Keir Starmer announce his immediate resignation from Parliament. The Green Party leader, Zack Polanski, hinted at potentially contesting Starmer's former seat in a by-election. An opinion poll also indicated the Conservative Party holding a lead over Reform for the first time in 18 months.
Darren Jones, a former member of the previous Cabinet, cautioned against relying on increased public spending to revive the economy. Jones argued in The Times that "short-term announcements" would be insufficient without addressing fundamental issues, and warned against seeking a return to a past era, emphasizing the need to confront the future.