Labour Left tells Andy Burnham to rip up tax pledges
Andy Burnham is being urged to tear up Labour's tax pledges to fund his costly spending plans.
The challenger to Sir Keir Starmer's leadership made a series of commitments during his by-election campaign – but has not yet to set out how he will fund them.
While fighting for the Makerfield seat, Mr Burnham said he would honour Labour's manifesto tax pledges, which include not raising income tax, National Insurance (NI) or VAT.
But his allies are now pushing him to drop the pledge or risk being 'hamstrung' in office.
The Prime Minister's position was hanging by a thread on Sunday night and an announcement Sir Keir will step down to make way for Mr Burnham could come as soon as Monday morning.
Labour ministers and MPs on the Left of the party have rallied around Mr Burnham – including right-hand woman Louise Haigh, Anneliese Midgley, who helped to run his campaign and Energy Secretary Ed Miliband.
One pro-Burnham minister told the Daily Mail: 'That manifesto was written at a certain point in time but so much has changed. I think Andy has an opportunity to say he's a new PM and in order to bring about real change, it is going to require some big changes.
'That includes on tax, where he is going to need to raise revenues to deal with the huge pressures in defence, in the NHS, in getting our high streets where they need to be... I think if we stick to those tax pledges he is going to be hamstrung from the start and people could become disillusioned very quickly.'
Allies of Andy Burnham are now pushing him to drop the pledge not to raise income tax, National Insurance or VAT
Toeing the line? Andy Burnham in Cheshire yesterday after his Makerfield by-election victory
Mr Burnham has committed slashing business rates for pubs and hospitality venues, nationalising water, energy and transport, a massive investment in to council housing and a revival of the northern leg of HS2.
Mr Burnham is yet to outline how he will pay for these promises, made in the heat of his campaign, which could cost taxpayers tens of billions.
Government estimates put the cost of nationalising the water industry alone at about £100billion – meaning Mr Burnham could have to look again at the tax commitments Labour was elected on in order to find cash for his economic agenda. Last night the Tories warned Mr Burnham's spending plans will damage the economy, as they said that he has 'high taxes, high borrowing in his DNA'.
Shadow Chancellor Sir Mel Stride told this newspaper: 'Andy Burnham wants to tear up Labour's already disastrous economic legacy and go even further. This will punish hard-working people who do the right thing.
'Rachel Reeves has raised taxes by over £60billion while letting the welfare bill spiral out of control. Burnham wants to double down on all her mistakes, with yet more taxes and more reckless spending and borrowing.'
Mr Burnham, photographed in Cheshire yesterday wearing Birkenstock sandals ahead of his return to Westminster today, spooked the financial markets last year when he said the Government should be less 'in hock' to the bond markets. But during his by-election campaign, he said he supported the Chancellor's fiscal rules – U-turning just weeks after suggesting they could be changed to fund defence spending.
There are those around Mr Burnham still advocating for such a move. On Friday Lord O'Neill, a former Treasury minister, said the Government should be 'bolder about borrowing to invest'.
The Prime Minister's position was hanging by a thread last night and an announcement that Sir Keir will step down to make way for Mr Burnham could come as soon as today
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The economist, who Mr Burnham has drafted in to boost his team of advisers, suggested more could be done to 'explore' Rachel Reeves's fiscal rules in order to boost spending.
UK gilt yields, which determine the cost of government borrowing, rose after Mr Burnham's victory cleared the way for his bid to oust Sir Keir. During his campaign he was likened to Robin Hood's 'Sheriff of Nottingham' after he boasted of hitting Manchester with the highest tax of any mayor.
Reform UK's Treasury spokesman Robert Jenrick last night warned that 'Burnham will show his true colours' upon entering No 10.
'Higher taxes to fund wasteful Net Zero spending, houses for illegal migrants, and benefits for those who don't need them,' he said. 'Labour never changes and working Britons will be forced to pay for it all.'
Meanwhile, Business Secretary Peter Kyle told Sky News that Mr Burnham must maintain 'fiscal discipline'.
Ms Reeves's fiscal rules state that day-to-day spending must be matched by tax revenues, so that Labour can only borrow to invest and not to fund spending.
Badenoch blasts 'moaning' female Labour MPs over Burnham jobs 'quota'
Kemi Badenoch has told Labour women to earn a job in Andy Burnham's Cabinet instead of demanding they are handed jobs because of their gender.
The Tory leader lashed out today amid reports that female MPs are demanding the de-facto new prime minister introduce a 50:50 gender split 'quota' in his government.
Amid reports that former foreign secretary David Miliband is being lined up to return to the role, possibly with his brother Ed as Chancellor, one female minister also complained that Burnham could not have 'more Milibands than women' in the top posts.
But in a scathing article in the Times today Mrs Badenoch told them to 'stop moaning' and get chosen on merit instead of retreating into 'more of the failed identity politics that is holding back our country'.
'There are many, many reasons why you shouldn't have any Milibands in the cabinet,' she said.
'But complaining that the boys haven't given them the right jobs or that the boys are taking all the jobs, just shows that Labour's women still don't get it.'
The idea of quotas was also attacked by Baroness Jacqui Smith, Labour's Skills Minister.
Asked by Times Radio if Mr Burnham should reserve jobs for women, she said: 'No, I think what Andy Burnham should be doing is building the very best team around him to change this country.'
A letter written by the Women's Parliamentary Labour Party has called on Mr Burnham to ensure a 50:50 split between men and women in government jobs
Amid reports that former foreign secretary David Miliband (above, right, in 2010) is being lined up to return to the role, possibly with his brother Ed as Chancellor, one female minister complained that Burnham could not have 'more Milibands than women' in the top posts
But Mrs Badenoch told them to pipe down and get chosen on merit instead of retreating into 'more of the failed identity politics that is holding back our country'
A letter written by the Women's Parliamentary Labour Party and seen by the BBC has called on Mr Burnham to ensure a 50:50 split between men and women in government jobs after he succeeds Sir Keir Starmer.
'We are asking you to demonstrate this change from day one and address the toxicity and misogyny within our own party and government,' it said.
Labour has never had a female leader, while the Conservatives have had three, and Mrs Badenoch urged the government to follow its meritocratic example.
'If you run a meritocracy, then you do not have to worry about jobs for the boys,' she wrote.
'Every woman who is a Conservative MP, every woman who has ever won the leadership, has had to fight to get where she is.
'By contrast, Labour women are demanding guarantees from Burnham. But the truth is he doesn't have to give any guarantees.
'If none of Labour's women are prepared to get their hands dirty and challenge him for the leadership, their demands are toothless.'
'In fact, it's quite revealing that the women's parliamentary Labour Party has written to Burnham asking him to commit himself to at least 50 per cent female ministers.
'This has nothing to do with meritocracy. It is yet more of the failed identity politics that is holding back our country.'
