Burnham blames Conservatives for debt crisis at first PMQs

Prime Minister Andy Burnham has refused to exclude the possibility of further borrowing or tax increases to finance government spending, while attributing the United Kingdom’s recent vulnerability to global bond market turmoil to the policies of the previous Conservative administration. During his first appearance at Prime Minister’s Questions, Burnham argued that the surge in debt servicing costs, which reached near two-decade highs in recent days, was a direct consequence of the exposure left behind by the former government. He maintained that the current administration is already implementing the necessary measures to reduce the national debt, asserting that Chancellor John Healey will adhere to established fiscal rules and that his leadership is grounded in fiscal responsibility.

When challenged by Conservative leader Kemi Badenoch, who described the Prime Minister as a spendthrift people-pleaser unable to identify funding sources, Burnham declined to commit to specific fiscal actions beyond his initial moves to cut business rates for certain sectors and remove value added tax on household energy bills. He stated that he had deliberately set an early date for the Budget to minimise the period of prolonged market speculation. The Prime Minister further criticised the Conservative record, citing fourteen years of stagnant growth and rising debt, and specifically targeted shadow chancellor Andrew Griffith for his role as a Treasury minister during the mini-budget delivered by Liz Truss and Kwasi Kwarteng.

The session was overshadowed by rising gilt yields, which have pushed government borrowing costs to levels not seen in nearly twenty years. Economists have warned that the increased costs associated with higher yields could significantly reduce fiscal headroom, potentially halving it depending on judgments made by the Office for Budget Responsibility in October. This financial pressure has raised the likelihood of tax hikes at the upcoming Budget. Despite Burnham’s stated intention to end political point scoring, his attacks on the opposition’s record continued, although a government spokesman insisted he remained willing to collaborate with Badenoch on welfare reform for young people out of work and social care.

The proceedings also included a challenge from Tan Dhesi, chair of the defence committee, who warned that vague intentions were insufficient for national security. Dhesi pressed the Prime Minister to commit urgently to a pathway for reaching three per cent of gross domestic product on defence spending by 2030. Burnham responded that he had already made that commitment, adding that a full plan for raising defence expenditure would be presented by the middle of next year.