New PM, New Budget: What It Means for Your Bills
Andy Burnham and John Healey have 42 days until the new government's first Budget to set out how they will handle the economy.
The BBC described the economy as the biggest challenge facing Mr Burnham. Mr Healey, as chancellor in what the BBC called a prime minister-chancellor double act, will give the Budget on 28 October. The Treasury confirmed the date as Wednesday 28 October in a notice published on 31 July.
Mr Healey used his first big speech as chancellor to promise tight control of public spending. He praised Rachel Reeves for starting to rebuild Britain's control of borrowing and debt.
The broader context here is who he was speaking to. The words were chosen for lenders who buy government debt, for the OBR, the independent group that checks the numbers, and for Labour MPs.
The government made one clear money switch in its first days. Mr Burnham dropped the digital ID scheme in the days before he became prime minister. He said he wanted to focus on everyday living costs. The money was then moved to cut VAT, the sales tax, on home electricity bills.
In terms of what that switch suggests, help with bills came first. Bigger changes can wait.
Former Bank of England chief economist Andy Haldane told LBC that without signs of cuts to public spending, markets suspect the government is "a traditional tax and spend socialist government with better TikTok videos." Mr Burnham rejected that description. He said "that does not tell the story and they are not that."
The broader point here is why that row counts. Tax, spending and borrowing plans will be judged together, day by day.
Mr Burnham reached No 10 through Makerfield. He was allowed to seek selection for the by-election, a vote to pick an MP outside a general election, in May. He won the seat in June. He then met Keir Starmer, their first meeting since the win. Days later he confirmed he would stand to be the next Labour leader.
In July he promised to stick to fiscal rules, the limits on borrowing and debt, while economists warned a £24 billion safety gap had already been worn away, according to Reuters. In August he told The Times that No 10 North should take the lead on growth from the Treasury. An analyst described his choice of chancellor as a relief for markets.
Mr Burnham had been due to host business leaders this week to talk about growth. He cancelled events on Monday and Tuesday after the death of his father, Reuters reported on 14 September.
The broader context here is the tight spot for any new chancellor, like a household with little spare cash if bills rise. Mr Healey must fund help people can feel, keep to rules markets can check, and leave room if forecasts worsen.
Looking to the next six weeks, three tests stand out. The first is whether spending control is spelled out. The second is whether the No 10 North growth team helps or complicates Treasury control. The third is whether the 28 October plan steadies nerves without restarting the debate over what Burnhamism means for business.
