Burnham Admits First Budget Was Not as Radical as He Wanted
Prime Minister Andy Burnham has admitted that his first budget was not as radical as he would have liked, pointing to economic uncertainty facing the country. In an interview with ITV, he said he had less "room for manoeuvre" than he wanted on his first Budget as prime minister.
The budget was held on 28 October 2026, according to Reuters. Before it was delivered, it was presented as providing "breathing space" for households, and as pursuing "growth in every postcode" and laying the groundwork for a "radical rewiring of the state." A budget is the government's annual plan for taxes and spending.
Burnham said he would have liked to go further, including by offering higher energy support payments. Chancellor John Healey announced a £100 payment for most households to help with energy bills this winter. Burnham also said he felt hemmed in by events beyond the government's control, such as the war in Iran, which he said had pushed up borrowing costs. Borrowing costs are the interest rates the government pays when it borrows money.
On welfare, the benefits system that provides payments to people out of work or unable to earn enough, Burnham said planned changes would not involve brutal cuts that would leave people in absolute crisis. He said he does not want to see anyone in their 20s on benefits unless they cannot work for reasons such as disability, as the Guardian reported. He plans to spell out his welfare reform plans in the coming months, after reports by Alan Milburn and Stephen Timms.
Ahead of the budget, Burnham said it would set out a plan to fully fund the government's existing defence commitments, according to Reuters.
The budget also came with a devolution plan, which hands more financial powers to local government. Under it, mayors in England will keep 20% of business rates revenue, the tax that businesses pay on the property they use, Reuters reported. Burnham has pledged a radical shift in where power and resources lie across the country.
