Andy Burnham has been Prime Minister for only a matter of weeks, but he's already facing a barrage of criticism over his economic strategy – or lack of one. From a blistering speech by Conservative leader Kemi Badenoch to warnings of a potential 'death tax', the new Labour government's approach to the economy is rapidly becoming the defining political battle of 2026.
At its simplest, the row is about spending and taxes. Burnham has announced a series of new spending commitments: £340 million to end rough sleeping, £850 million to cut energy bills, and £454 million to cap bus fares at £2. He has also signalled further spending on council housing, social care and nationalising utilities. But his critics – led by Badenoch – say he has no clear plan for how to pay for any of it. 'Andy Burnham needs to do better,' Badenoch is expected to say in a speech in central London. 'He is still thinking like the Mayor of Manchester. But he is no longer the Mayor of Manchester. He is Prime Minister of the United Kingdom.'
“Andy Burnham's economic plan is under attack from Kemi Badenoch and critics over spending and potential tax rises.”
To understand the depth of the problem, you need to look at the economic inheritance. Productivity growth in the UK collapsed after the 2008 global financial crisis and never fully recovered, according to analysis from UnHerd. The City of London was once the gift that kept on giving, but that engine has spluttered. Previous prime ministers – from both parties – failed to reignite it. Burnham now inherits that slow-growth economy, and the question is whether he has a strategic answer or is just throwing money at problems.
For UK readers, the stakes are personal. If Burnham cannot show a credible economic plan, the consequences could include higher taxes, slower wage growth, or even a loss of confidence in British government bonds. One rumour doing the rounds, reported in the Daily Mail, is that Burnham may impose a 10% 'death tax' on all estates to help fund his spending spree. That prospect has already sparked fury. Badenoch will demand that Burnham 'rule out tax rises to pay for his spending spree.'
Q: Is Andy Burnham really planning a death tax? Nothing has been confirmed. The Daily Mail reported that Burnham is heading a 'fiscally illiterate government' and warned that a 10% tax on all estates would cause a 'wave of rage'. But no official policy has been announced.
Q: Why is Kemi Badenoch attacking Burnham's economic strategy? Badenoch argues that Burnham lacks ambition for Britain and has no overarching economic plan beyond social justice platitudes. She will tell him to 'get his act together' and prioritise growth over what she calls his 'spending spree'.
Q: What would a credible economic strategy look like? According to UnHerd, Burnham needs to set clear goals and intermediate targets – as Bill Clinton did in 1992 – and identify the real-world obstacles. The key challenge is reviving UK productivity growth, which has been stagnant since 2008.
What happens next is uncertain. Badenoch's speech is expected to land a heavy blow, but Burnham has not yet laid out a comprehensive fiscal event. The Treasury is likely preparing a Budget or spending review, but no date has been set. Until then, the debate over whether Burnham has a plan – or is just making it up as he goes – will only intensify.