By Fatma Younis
British Prime Minister Andy Burnham has conceded that his first budget, delivered this week, was not as radical as he would have liked, citing economic uncertainty driven by the war in Iran and the constraints of Labour’s 2024 election manifesto.
Chancellor Announces Modest Measures
Chancellor John Healey unveiled a package of relatively inexpensive measures on Wednesday, including a £100 payment to most households to help with energy bills this winter. Burnham told ITV that while he would have preferred higher energy support, the government felt hemmed in by external events that have pushed up borrowing costs.
Criticism and Welfare Reform Plans
The budget has drawn criticism for not doing enough on defence spending, welfare cuts, and cost-of-living support. Conservative leader Kemi Badenoch dismissed the announcement, saying many would ask “is that it?” Burnham said he wants major changes to the benefits system to prevent most young people from needing to claim benefits, with details to follow after two major reports. He insisted reforms would not involve “brutal cuts” but added he does not want to see people in their 20s on benefits unless prevented by disability.
Manifesto Constraints and Future Mandate
Burnham came to office promising an end to “40 years of neoliberalism” with higher taxes on wealth and nationalisation of major utilities. So far, the government has made smaller announcements such as tax cuts on energy bills, lower bus fares, and fines for loud music on public transport. Burnham acknowledged that Labour’s 2024 manifesto ruled out raising income tax, national insurance, or VAT, limiting his room for manoeuvre. He said he would seek his own mandate at the next election and admitted he would not have written the manifesto exactly as it stands.
