Tories challenge Chancellor on Burnham’s ‘unfunded spending commitments’
George Lithgow and Will Meakin-Durrant, Press Association Political Staff
The Conservatives have called on the Chancellor to set out how he will pay for Andy Burnham’s “unfunded spending commitments”.
Shadow chancellor Sir Mel Stride said the Prime Minister’s pledges will add to concerns about tax rises at the next budget.
In a letter to John Healey, Sir Mel said the country “cannot afford to tax or spend or borrow our way into avoiding difficult decisions”.
The Prime Minister and Mr Healey are already under pressure to say how they will sustain a raft of support packages they announced for bus passengers, energy billpayers and pub punters.
Mr Burnham has been accused by the Tories of going on a spending spree, and the Resolution Foundation think tank estimated that this week’s pledges have squeezed the fiscal headroom to as little as £8 billion.
The Prime Minister said he would knock VAT off electricity bills in England, Scotland and Wales from October 1.
The Government has estimated the move will cost around £850 million in 2026-27.
It would be paid for by cancelling the digital ID programme, which was expected to cost £1.8 billion over three years.
The Prime Minister also went to Bath, Somerset, to celebrate his plan to bring the £3 bus fare cap down to £2 throughout 2027.
This will be funded by turning international climate grants into loans, raising around £400 million, and raising a further £54 million from savings in the Department for Energy Security and Net Zero budget.
Mr Burnham spent Thursday morning at The Hare pub in Harlow, Essex, where he announced that business rates for pubs, clubs and live music venues would be cut by 20% from April next year.
The move will cost the Treasury around £100 million.
Sir Mel said: “Andy Burnham came into office without a plan.
“He has made numerous promises but seems to have little idea how he will pay for any of them.
“These unfunded pledges will only add to concern and speculation about yet more Labour tax rises at the next budget, as well as yet more borrowing, leaving a crippling burden for future generations.
“Britain cannot afford that – and businesses and households should not be left in the dark.
“That’s why I’m calling on John Healey to come clean on the real cost of Burnham – and tell us who he expects to pay for it.”
A Labour Party spokesperson said: “The Tories crashed the economy and left families worse off.
“They’ve never apologised and are still making uncosted promises today.
“They may have forgotten what they did, but nobody else has.
“Andy Burnham’s fully funded pledges will start to give people some of the breathing space they deserve.
“We’re cutting tax on electricity bills, capping bus fares at £2, and slashing business rates for pubs, social clubs and live music venues – immediate action to help families and high streets.”
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Conservatives? Call for “unfunded” decisions to be explained? Lets see, Kemi wants to drop net zero, that will impact the UK massively and there are rules to trading with the EU that mean we will get increased tariffs for breaking that commitment. Kemi wants to drill baby drill and there are no benefits to the ordinary UK person, it will be on the open market, the direction needs to be greening up and more jobs available that route. See net zero. She wants out of the ECHR, that will have trading issues and will remove our rights, that will be… Read more »