Burnham promises stability before first Budget as tax rises loom

Andy Burnham has said his first Budget on Wednesday will be built around keeping the economy strong and stable, helping households and businesses, and avoiding risks with the public finances. In an interview ahead of the Budget, the Prime Minister rejected the idea that it would be a 'big bang' for his agenda and said his job was to give people breathing space.

He pointed to measures already announced or under consideration: £80 off electricity bills, a commitment to a £2 bus fare cap in 2027, and a request for the Chancellor to look at standing charges on gas bills. He said faster investment in renewables could bring down gas and electricity bills further. He cited an International Monetary Fund report last week that he said showed the UK as joint fastest growing in the G7 and the standout nation for deficit reduction.

Burnham warned that taking risks with the public finances would put people's private finances at risk. He pointed to the mini budget, which he said caused havoc with mortgages. He accepted that people may not feel the economic improvements in their own finances, citing pressure from the Middle East and energy prices. He said he wanted to set a direction for the country, break with a decade of drift, and focus on growth in all parts of the UK. He said he would bring forward a 10-year plan for Britain later this year and promised a bit of positivity, including an appearance on Gogglebox.

A political panel said Number 10 and the Treasury were treating the Budget as a danger zone to be navigated rather than a launchpad. They expected some tax increases, including a raid on banks, but did not expect an increase in capital gains tax or a mansion tax. They also expected limited giveaways on energy costs, a possible delay to a fuel duty increase, support for young people not in employment, education or training, and help with business costs. The panel said the radical element of the Budget could be devolution, with power pushed out of Whitehall to regional mayors and devolved administrations.

The panel also noted a gap between Burnham's earlier rhetoric about a circuit breaker for Britain and ending 40 years of neoliberalism and the current strong and stable message. They said the public finances had deteriorated since the start of the year, with global factors including conflict and a bond market sell-off making debt interest payments more expensive. That, they said, meant the government needed to find money rather than give it away.