Why The PM Must Be Wary His ‘Burnham Bounce’ Does Not Turn Into A Boomerang

He’s only two weeks into the job and Andy Burnham has already been hit with his first deadline.

A British commander warned the prime minister on Thursday that he needs to make his defence spending commitments clear by the autumn – or risk losing his support.

General Sir Richard Barrons, who co-authored the 2025 Strategic Defence Review, warned “a much more challenging discussion about what do you really think you’re doing with this government” awaits Burnham if he has not outlined plans by September or October.

His words follow a week where ministers repeatedly refused to commit to the previous target of spending 3% of gross domestic product (GDP) on defence by 2030.

It’s an obstacle which proved fatal to Keir Starmer’s premiership.

John Healey resigned as defence secretary over a lack of spending for his department in June, something which helped to accelerate the former prime minister’s downfall.

By making Healey his chancellor, Burnham has sent clear signals that he will respect demands to hike up the department’s budget.

So why did the new defence secretary, Wes Streeting, only commit to the Nato pledge 3.5% of GDP on defence by 2035 – a date which is in the next parliament – this week?

He told broadcasters that while the government is not “ruling out” the 3% spending commitment by 2030 but added: “It’s really important we set out how it will be paid for.”

While a very reasonable observation – a marker of how the Burnham cabinet is already building a reputation for more transparent communication – worries about defence investment are hardly new.

Russia’s invasion of Ukraine started more than four years ago and the Israel-Hamas conflict in Gaza has been raging since 2023.

British Prime Minister Andy Burnham, foreground, and Defence Secretary Wes Streeting, right
British Prime Minister Andy Burnham, foreground, and Defence Secretary Wes Streeting, right

via Associated Press

Chair of the defence committee, Labour MP Tan Dhesi, told HuffPost UK that the government “must set out a clear plan for meeting its defence spending targets, with specific milestones and deadlines.”

He said the committee has already called for defence spending to reach 3% of GDP in this parliament.

Dhesi warned: “With the prospect of a Russian attack on a Nato ally before 2030, we cannot afford to delay. Investment in the UK’s defence and security must be accelerated as a matter of urgency.”

There’s also the matter of the “black hole” in the £15 billion defence investment plan (DIP) which Starmer failed to fully cost before he left office.

The Treasury only found £10.3 billion in departmental savings, meaning Burnham will have to find £4.7 billion in his autumn budget.

Even if the DIP were fully-funded, it would only take the UK to 2.7% of GDP from 2027-28.

It’s not just Burnham’s defence policies under scrutiny over potential cost, either.

His policy blitz from the last two weeks has seen him live up to his promise of putting the cost of living at the heart of his government.

The PM has promised to cut VAT from energy bills, a move expected to cost £850m.

The government said this would be funded via the cancelled digital ID programme.

However, former cabinet minister Darren Jones said the tax cut was “unfunded” because there had never been an extra pot of money for digital ID.

Burnham also announced a £500m plan to cap bus fares at £2 from January until the end of 2027 outside of London.

Most of the funding will come from money reserved for climate and energy projects, despite worries about the international impact.

The PM revealed a 20% cut in business rates for pubs and clubs too, which will cost £100m a year.

That will be funded by removing business rates relief from businesses which do not “make a positive contribution” to local communities, though the exact details remain unclear.

Burnham’s daily policy announcements have effectively boosted his support among voters and stopped him from looking like Starmer 2.0.

““It is in that sense that his honeymoon may only last so long, before the reality of governing effectively causes him the same problems it has previous Prime Ministers.””

Labour has overtaken Reform in some polls for the first time in 16 months, with Survation putting Burnham’s party on 26% compared to Nigel Farage’s 24%.

Deltapoll and YouGov put the parties neck-and-neck, while More in Common found Burnham’s approval rating has soared to heights Starmer never reached.

But, as Savanta’s political research director Chris Hopkins warned, this could go into decline when the PM has “actual difficult decisions to make”.

He told HuffPost UK: “Burnham has started well, and his policy blitz, well-received by commentators, will begin to trickle down to the public.

“At this stage, though, the bounce is more likely to be less about Burnham the man and more about what he is trying to represent – a break from ‘politics as normal’.”

But he noted: “Where this has the potential to fall down is when he has actual difficult decisions to make.

“He’s already discussed using up his political capital to reform social care, something that has made PMs before him, namely Theresa May, come unstuck with the electorate.

“There is a danger that his popularity will fall, and fall quickly, as soon as he tries to address the challenges his predecessors failed to.

“It is in that sense that his honeymoon may only last so long, before the reality of governing effectively causes him the same problems it has previous prime ministers.”

More in Common’s Louis O’Geran offered a similar warning that his time in the sun might not last very long.

The external affairs manager told HuffPost UK: “There’s no doubt that changing leader mid-term has given Labour and the new PM breathing space.

“After a couple of weeks of popular announcements, Labour’s standing in our latest poll has risen to its highest since the early months of Keir Starmer’s government, and Burnham’s own approval rating now surpasses Starmer’s all-time high.

“However, it’s still very early days, and we’ve only seen a small number of polls so far. What these results tell us most of all is how volatile public opinion has become.”

Burnham will most likely be able to enjoy a few weeks of rising in the polls across the summer.

But, when MPs return from recess, parliamentary scrutiny resumes and pressure rises ahead of his first Labour conference as leader, real life will hit for voters as they realise the money has to come from somewhere.

Will Burnham be able to retain his newfound support once the cost of his promises start to come in?

Listen to Commons People, the podcast that makes politics easy. Every week, Kevin Schofield and Kate Nicholson unpack the week’s biggest stories to keep you informed. Join us for straightforward analysis of what’s going on at Westminster.
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Burnham Says He Told Trump He Will Be ‘Pragmatic’ About North Sea Oil And Gas

Andy Burnham has confirmed he told Donald Trump he would be “pragmatic” about drilling in the North Sea for oil and gas.

Reporters were surprised after the US president insisted the new prime minister told him over the phone that the UK will “open up” the fossil fuel reserves under his premiership.

Trump said on Wednesday: “The new gentleman [Burnham], when I spoke to him, he said he’s going to open up the North Sea.”

In response, the PM told the media on Thursday: “I indicated in the phone call that we had a week last Monday that I would take a pragmatic approach when it comes to the North Sea and that is my intention as we go forward from here.

“There is a resource there. When people are struggling, you can’t ignore that, and hence me indicating that to the president.”

The topic is deeply controversial because of the ramifications extracting and then burning fossil fuels has on climate change.

Burnham’s predecessor Keir Starmer clashed with Trump over his reluctance to drill for more oil and gas in the North Sea, even amid growing energy security concerns.

Supporters of North Sea expansion suggest new drilling licences would help create jobs and support British industry.

Burnham’s foreign secretary Ed Miliband was against further drilling in the last government.

He was determined, as Starmer’s energy secretary, for the country to reach its Net Zero by 2050 goal.

However, he’s now been moved out of the energy brief so it is unclear what influence he will have that area of policy.

Labour’s 2024 manifesto also promised voters it would not issue any new licences for further extraction in the North Sea – and Burnham has vowed to stick to that set of pledges.

But, there could be wriggle room as the manifesto notes that existing licences will be allowed to remain.

That means the government could still look to enact or expand the extraction sites already active.

Listen to Commons People, the podcast that makes politics easy. Every week, Kevin Schofield and Kate Nicholson unpack the week’s biggest stories to keep you informed. Join us for straightforward analysis of what’s going on at Westminster.

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‘What, A New One?’ Care Home Resident’s Hilariously Honest Reaction To Meeting PM Andy Burnham

A care home resident’s honest reaction to meeting Andy Burnham left the prime minister looking a little embarrassed on Wednesday.

The PM announced his plan to overhaul the social care sector yesterday before speaking to several pensioners to promote his ideas.

But one encounter – caught on camera by Channel 4 – quickly went awry.

“You are the local candidate, are you?” The man said.

“Oh no,” Burnham said, smiling. “No I was a local candidate, I had a by-election a few weeks ago. But, I’m now the prime minister.”

“You what?” The man said.

“He’s the prime minister,” someone else told him.

“What, a new one?” The pensioner with incredulity.

Burnham nodded, adding: “Yes, another one.”

“They keep changing every five minutes!” The man said, and the PM laughed.

The encounter was reminiscent of the viral TV moment when a woman, known only as Brenda from Bristol, reacted with nothing but shock when she found out Theresa May had called a snap election in 2017.

She said: “You’re joking – not another one!”

Her response was not unwarranted, as it came after the 2016 referendum on EU membership and the 2015 general election.

Similarly, Burnham is the UK’s seventh prime minister in a decade.

David Cameron stepped down as PM after the country voted to leave the EU in 2016 and Theresa May quit in 2019 over not being able to get a Brexit deal through the Commons.

Boris Johnson called a snap election in 2019 when he took over from May, but was kicked out of office in 2022.

His successor Liz Truss spent less than two months before the Tories forced her to resign over her mini-Budget.

Rishi Sunak was then voted out in the 2024 general election and Keir Starmer quit this summer after it was clear he had lost the support of Labour MPs.

Burnham was the Greater Manchester mayor up until he won the Makerfield by-election in June, and was the only Labour MP to put his name forward to replace Starmer.

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How Andy Burnham Promised Labour Unity And Then Delivered A Cabinet Massacre

Andy Burnham proved he was not afraid to use his political capital when he finally got the keys to 10 Downing Street.

Within hours of being formally announced as the UK’s latest prime minister on Monday, he had completely torn up Keir Starmer’s cabinet.

Rachel Reeves was sacked as chancellor, while deputy prime minister and justice secretary David Lammy also found himself out of a job.

Chief secretary to the prime minister Darren Jones was fired, as were cabinet office minister Nick Thomas-Symonds, Northern Ireland secretary Hilary Benn and attorney general Lord Hermer.

Bridget Phillipson was stripped of her education brief, although she will still attend cabinet as the minister for women and equalities.

In all, a dozen cabinet members lost their jobs.

Despite the new PM’s vow to end Labour “factionalism”, there’s no two ways about it: this was a culling of Starmer loyalists.

In their place came close Burnham allies like Louise Haigh, who is now effectively the PM’s deputy, and Anneliese Midgley, who was made chief whip.

Ed Miliband – the first cabinet minister to tell Keir Starmer to quit – was promoted to foreign secretary, although he did miss out on the job he really wanted, Chancellor of the Exchequer.

In a major shock, that post went to John Healey – whose resignation as defence secretary last month was the final nail in Starmer’s coffin.

Meanwhile, Wes Streeting, who resigned as health secretary in May in protest at Starmer’s leadership, also returned to cabinet as the new defence secretary.

Some members of Starmer’s old team did survive, however.

They included Pat McFadden, who remains work and pensions secretary, and Yvette Cooper, who is the new health secretary.

One Labour MP described the new cabinet as “a mixed bag”.

“Some of the appointments are merit-based, but some of it pure factionalism,” the MP added.

A senior party figure told HuffPost UK: “It’s a really bad reshuffle. He’s made far too many enemies, and given far too many jobs to his mates.

“It’s not just the people he’s sacked – he’ll have pissed off Ed, Yvette and Bridget.”

A third source said: “Midgley as chief whip is a disaster, she doesn’t know enough Labour MPs.

“They’ve now got loads of pissed off people who lost jobs or who didn’t get jobs at all. What could possibly go wrong?

“It just felt lik a mess of a reshuffle done by people who don’t know the Parliamentary Labour Party, or any of the dynamics around politics that you have to balance.”

A Labour veteran defended Burnham’s line-up, however, insisting there was a “clear logic” to his appointments.

“There’s no way he could have made Ed chancellor because he’s too divisive, so making him foreign secretary is a good consolation with the added bonus that it gets him out of the country,” they said.

“Wes is a good appointment at the Ministry of Defence. He’s bright and energetic, a description which does not apply to many of those who have been sacked.

“He just needs to stop riffing on social media. He’s now in a department where they kill people, so he has to calm down and grow up, otherwise he will crash and burn.”

But not everyone is happy.

One MP was dismayed at the lack of left-wingers in the ministerial ranks.

“This is a hard lesson in power politics and it’s a lesson well received,” he said.

“This is what the cabinet would have looked like if Owen Smith had beaten Jeremy Corbyn in 2016. The left won’t feature apart from the perhaps odd token position.”

This week’s Commons People podcast explores what kind of message Burnham is trying to send with his appointments – and why he might have added more fuel to Labour’s simmering civil war.

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Burnham Slaps Down Streeting And Mahmood Over Early Release Joke Caught On Hot Mic

Andy Burnham has slapped down two of his cabinet minister after they were caught on a hot mic joking about the early release of prisoners.

Wes Streeting and Shabana Mahmood were forced to apologise over their remarks, which were recorded in the Downing Street garden following the first meeting of the prime minister’s new cabinet.

Referring to new justice secretary Alex Norris, defence secretart Streeting said: “You know he’s the enemy now he’s at justice, Shabana? He wants to let them all out.”

Laughing, home secretary Mahmood replied: “No he’s not.”

When she was justice secretary after the 2024 election, Mahmood approved the early release of thousands of prisoners to ease overcrowding in jails.

In a post on X, Streeting said the exchange was a reference to comments made by former Tory prime minister Theresa May about Ken Clarke, who served as justice secretary in David Cameron’s government.

She said: “When I was home secretary and he was justice secretary, I used to say that I locked ’em up and he let ’em out.”

In a statement posted on X on Tuesday night, Streeting said: “I hope everyone can see there was no ill intent behind this ribbing of the new Justice Secretary – it was a reference to an old May/Clarke joke.

“But I appreciate these are very serious issues and am sorry for any offence inadvertently caused by this moment of levity.”

Mahmood said: “I think everyone can see there was no ill intent behind this ribbing of the new Lord Chancellor – a role I once filled and which comes with immense challenges thanks to the vandalism inflicted on our justice system by the last Conservative government.

“But I appreciate this is an extremely serious issue and do not want anyone to mistake this moment of levity for a lack of serious intent.”

Asked on Wednesday whether the pair’s comments were acceptable, Burnham said: “No, it’s not, and certainly that’s been acknowledged, and apologies have been made.”

The row came as the PM announced he was reviewing the early release scheme after it emerged two men jailed for killing a police officer could be let out of prison before the end of their sentences.

PC Andrew Harper was 28 years old when he sustained fatal injuries while responding to a quad bike theft in Sulhamstead, Berkshire, in August 2019.

The driver of the vehicle which caused his death, Henry Long, received a 16-year sentence, and will not be eligible for early release.

But Jessie Cole and Albert Bowers, who were passengers in the car and handed 13 years in custody for manslaughter after a trial at the Old Bailey in 2020, could be let out early.

PC Harper’s widow, Lissie, said: “It is deplorable to me that we have reached a point where releasing prisoners early is even considered acceptable.

“We speak of justice, accountability and standing with victims, yet decisions like this do the opposite.

“They tell victims their suffering matters less, and offenders that the punishment handed down by our courts is no longer what they will actually serve.”

Burnham said he would “review the whole of this policy” before it proceeds.

“I can’t say that I can change the policy completely, but I will look at it in detail before we go further forward.”

Listen to Commons People, the podcast that makes politics easy. Every week, Kevin Schofield and Kate Nicholson unpack the week’s biggest stories to keep you informed. Join us for straightforward analysis of what’s going on at Westminster.

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Martin Lewis Weighs In On How Andy Burnham Should Handle The Cost Of Living

New prime minister Andy Burnham has announced that the government will cut VAT (value added tax) from electricity bills as part of his campaign to lower the cost of living. Some think he may cap bus fares at £2, too.

His government’s new chancellor, John Healey, who replaced Rachel Reeves on Monday, said: “For too long, too many people have struggled with the cost of living. Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.”

On X, Money Saving Expert’s founder and executive chair, Martin Lewis, has spoken about how he thinks the new PM should tackle the cost of living.

“For me, there are three main areas,” he shared in a video.

These are:

1) The cost of living

This is “pretty obvious”, the money guru said. He claimed: “We’ve had high inflation for a long time, and though inflation has come down now, that just means prices aren’t rising as quickly as they were”.

In other words, though price hikes have slowed, we may still be paying more than previous years due to former periods of high inflation. Costs aren’t rocketing up as fast, but they’re not lowering either.

“So, things feel expensive,” Lewis continued, adding that cutting VAT from electricity bills is a “totem of help”.

However, he said: “It’s only a small amount… there needs to be more policy costs coming off energy bills. We need to look at banning mid-contract price hikes on mobile and broadband [services].”

Lewis also addressed water bill hikes, which have risen by 40% in some areas, and high mortgages and rents.

2) Intergenerational problems

“What I mean by this is basically, young people being shafted,” the expert said. “The job market is tough, AI is going to make that even more difficult.”

Job vacancies fell to half their 2022 levels in the three months leading to May 2026.

Lewis also stated that “the current government is making it worse for the millions of people with outstanding Plan 2 student loans… it’s going to freeze the repayment threshold from April”.

When Plan 2 student loans were announced, the government said the £21,000 earnings threshold would be updated every year in line with earnings from 2016 (in other words, it’d take a higher wage until the government asked you to pay your loan back).

But this was frozen from 2016 to 2018, and again from 2021 to 2025, and in last year’s budget, it was announced it would be frozen again for three years.

“If you freeze this repayment [and] people’s earnings are going up, then they’re paying more back,” Lewis said, claiming: “It is a breach of the original promise”.

He said he hopes the new government overturns the freeze as one of its first acts.

Calling the entire student loan system “broken”, Lewis continued: “the level of interest needs to be cut, repayment [thresholds] need to be higher”.

The money pro pointed out that the amount of money that qualifies someone for a maintenance grant has stayed the same since 2008, even though costs have gone up.

3) The ‘helped and helped-nots’

Lewis called discussions around “who do you help and who don’t you help when it comes to the cost of living” the “biggest of all the challenges”.

He said that some of the “visceral anger” he perceived towards former PM Keir Starmer comes from people who feel they’ve been “left out of help”.

“They are just above getting benefits, just above qualifying for social tariffs, just above qualifying for pension credit,” he said. “They’re on low to low-middle incomes, and they haven’t got any help.”

Lewis said that Burnham faces a “real challenge” in deciding “exactly where to draw the line” on support.

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Rachel Reeves Sacked As Andy Burnham Axes Keir Starmer Loyalists In Brutal Reshuffle

Rachel Reeves has been sacked as chancellor as Andy Burnham axed a raft of Keir Starmer loyalists from cabinet.

In a brutal reshuffle, the new prime minister also dumped David Lammy, Peter Kyle, Steve Reed, Lord Hermer and Liz Kendall.

They are expected to make way for key Burnham supporters, including Louise Haigh.

It is understood that she was offered “a big job” by Burnham but turned it down.

Announcing her departure on X, Reeves said it had been “the privilege of my life to serve as the Chancellor of the Exchequer”.

She said: “The economy today is stronger, fairer and more resilient because of the choices we have taken as a Labour government over the past two years.

“Stability restored, investment delivered and reform to our economy under way. I said when I was appointed chancellor that I would judge my time in office if the lives ordinary working class people have been improved. I’m proud to say that they have.

“And to every young woman and girl let my time in office show there should be no ceilings on your ambitions, your hopes or your dreams.

“I wish the very best of luck to my successor, Andy and his cabinet. You have my full support, and I will continue to play my part in helping this Labour government deliver the change the country needs.”

Lammy, who was Keir Starmer’s deputy PM as well as justice secretary, said he “would have been proud to continue serving” in the cabinet, but had been sacked.

He said: “A new prime minister is entitled to build his own team, and I wish Andy Burnham and the new cabinet every success.”

Housing secretary Steve Reed, one of Starmer’s staunchest defenders, said he was “disappointed to be leaving government now”.

Kyle, who was business secretary, was another Starmer ally ousted as Burnham’s draws up his own top team.

Lord Hermer, who was Starmer’s attorney general, also said it had been “the privilege of my life to serve my country”.

“I will continue to support this Labour government from the backbenches, as it delivers the change this country desperately needs,” he said on Bluesky.

“Andy and his team know they have my utmost support and I wish them nothing but success.”

This is a breaking news story and will be updated. Follow HuffPost UK on Twitter, Facebook and Instagram.

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Who Is In Andy Burnham’s Government – And Who Is Out?

Andy Burnham has started to announce his ministerial picks on his first official day as prime minister.

The new PM is looking to draw a line in the sand between Keir Starmer’s government and his own, and so will likely root out those most closely linked to his predecessor.

However he has said he wants to run a more “collaborative” type of politics, suggesting he would be happy to have a range of ideologies in his top team.

Here’s what we know so far.

Cabinet Dismissals

Rachel Reeves has been sacked as the chancellor, having been closely tied to Starmer’s government and helped him enact any major economic policies.

She wrote on X: “I wish the very best of luck to my successor, Andy and his cabinet. You have my full support, and I will continue to play my part in helping this Labour government deliver the change the country needs.”

She was reportedly offered a role in Burnham’s government but turned it down.

Steve Reed was dismissed as housing and communities secretary, too.

He was loyal to Starmer to the very end so it is unsurprising he added a brutal parting shot for the new administration in his resignation letter.

The Labour MP wrote: “Keir Starmer showed loyalty to me by appointing me to his Cabinet. I make no apology for returning that loyalty. It’s what is expected of functioning teams, and I hope those who did not show loyalty to Keir will now show it to you.”

David Lammy was also kicked out of government after serving as deputy prime minister, justice secretary and previously his foreign secretary.

The Starmer loyalist wrote on X: “I would have been proud to continue serving in cabinet. But a new prime minister is entitled to build his own team, and I wish Andy Burnham and the new cabinet every success.”

Peter Kyle was also sacked as business secretary while Liz Kendall was fired as the work and pensions secretary.

Attorney General Lord Hermer and close friend to Starmer was kicked out, too, though he said the incoming government will have “my utmost support”.

The new prime minister is yet to confirm who he wants in his cabinet.

Wider Government

James Timpson, who was appointed to the Lords to serve as prisons and probation minister back in 2024, announced he was “retiring” today.

He spent longer in the post than anyone else appointed to the ministerial position over the last 15 years.

Science minster Patrick Vallance – and the government’s chief scientific adviser during the pandemic – quit on Monday morning, citing “personal reasons”.

It comes amid speculation the science department could be disbanded under Burnham.

This is a breaking news story. Check back for updates or follow HuffPost UK on X at @HuffPostUK or on Facebook.

Listen to Commons People, the podcast that makes politics easy. Every week, Kevin Schofield and Kate Nicholson unpack the week’s biggest stories to keep you informed. Join us for straightforward analysis of what’s going on at Westminster.

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Burnham Government To Scrap Starmer’s Plan For Digital ID Scheme

Andy Burnham’s government intends to scrap Keir Starmer’s plan to implement digital ID, a close ally to the incoming prime minister has confirmed.

Dropping the controversial scheme is part of Burnham’s bid to put his own stamp on government and distance himself from his predecessor’s most divisive policies.

Starmer announced plans for a digital ID scheme last September to crack down on illegal working, but it sparked fears about whether personal data might then be at risk.

Speaking to Laura Kuenssberg on the BBC, deputy Labour leader Lucy Powell said scrapping the programme move would allow ministers to be “laser focused on the cost of living, laser focused on rewiring the economy, rewiring the political system in this country, and clearing the decks, if you like, from of all of the other things that might distract and take away from that in terms of the focus of the government”.

Asked how much money would now be freed up for other means, Powell said: “The OBR said it would cost, I think, £1.8 billion over the over the coming years.

“That’s not an insignificant amount of money. That will obviously be re-prioritised and redistributed in different ways.

“But as I say, it’s not just about the money.

“It’s actually about the attention and the focus, so that the the whole of government machinery can work in service of the agenda and the vision that the Labour government is setting out under under Andy Burnham, and I think that is important.”

She also claimed Burnham will deliver on the Labour manifesto by being “bolder” and “clearer” about what the party stands for.

Powell confirmed there would be a “change of emphasis” on North Sea oil and gas drilling under Burnham as well.

There has been widespread speculation that the new prime minister might issue new drilling licences to boost the UK’s energy security, even though the 2024 Labour manifesto pledged not to.

Though she did not confirm what Burnham intends to do on the divisive topic, Powell said the new PM would take a “more pragmatic approach” towards North Sea drilling.

Powell said: “We’ve been really clear that the way to achieve, in the long term, energy security and lower bills is by ensuring that we do have our our own homegrown, clean, much cheaper energy.

“But we’ve been absolutely clear that North Sea gas and oil is an important part of that transition.

“It’s an important part of the mix, and I think what Andy’s talking about is taking a more pragmatic approach and working with the industry to make sure that it can contribute to that transition and to the the mix that is needed over the long term.

“So let’s see what he’s got to say about that. But I don’t think it’s a change of policy. It’s more a change of emphasis.”

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Liz Truss Breaks The Irony Metre By Predicting Andy Burnham Will Cause ‘Financial Crisis’

Liz Truss has predicted that Andy Burnham will lead Britain into a “financial crisis” in a moment which feels like pure satire.

The former Conservative prime minister famously planned to implement £45 billion of unfunded tax cuts which sent the pound into decline and the markets into turmoil.

The Bank of England even had to step in and buy £65 billion worth of government bonds to prevent disaster.

The chaos unleashed by her mini-Budget meant Tory MPs quickly pushed Truss out of office after just 49 days – making her the UK’s shortest-serving prime minister in history.

However, speaking at CPAC GB – a right-wing conference which is a spin-off of its American counterpart – Truss has predicted that the incoming PM Burnham would send the UK into “financial crisis”.

According to the Mirror, she said: “The money’s going to run out. I think the problems with migration are going to get worse and the general decay and stagnation of Britain is going to continue.

“I think the question is how long the pro-progressive authorities can continue.

“My prediction is that there will be another prime minister before 2029.”

Burnham was announced as the Labour leader on Friday and is set to become the next prime minister on Monday when Keir Starmer hands over the keys.

There is some trepidation about his plans for the economy amid fears he could push public spending hikes.

Truss’s words also come after the International Monetary Fund (IMF) warned Burnham this week that the UK is still struggling with the scars left behind by Truss’s mini-budget of 2022.

Four years on, and gilt markets are still nervous about the UK fiscal policy than previously, and according to the IMF, there has been a “regime change” on bond markets as a result.

Truss also told the conference: “We’ve had seven prime ministers in ten years.”

She added: “That’s the equivalent of a crap football team changing its manager all the time but not changing what happens on the pitch.”

It seems to have escaped her attention that five of those seven prime ministers have been Conservative – and she was one of them.

Truss also tried to call for right-wing figures to join her “counter-revolution” rather than going for jobs outside of politics.

“It’s time for successful people in Britain who actually care about the future of our country to step up. To stop being such cowards because at the moment they’re being cowards,” she said.

Truss lost her seat to the Labour Party at the 2024 general election.

According to the Mirror, barely a third of the 500-seat hall was occupied for her appearance at CPAC GB.

Burnham’s team has been approached for comment.

Listen to Commons People, the podcast that makes politics easy. Every week, Kevin Schofield and Kate Nicholson unpack the week’s biggest stories to keep you informed. Join us for straightforward analysis of what’s going on at Westminster.

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