Andy Burnham has met trade union leaders at Unison’s headquarters in a bid to secure their backing ahead of his expected march to the premiership on 20 July – while simultaneously vowing to find billions to plug a defence funding gap left by his predecessor.
Union sources described the hour-long meeting as “positive”. The GMB raised concerns over water ownership and union access to workplaces; Unison pressed for changes to migrant care workers’ residency rules, which Burnham is thought to be open to; and Unite demanded a wealth tax, more cost-of-living action and details of reindustrialisation plans. His commitment to maintaining fiscal rules on debt and borrowing was also questioned.
“Andy Burnham meets union leaders and pledges billions for defence amid row over possible chancellor Ed Miliband.”
The meeting came hours after Burnham, in his first broadcast interview since winning the Makerfield by-election, told LBC’s Andrew Marr he would “take my responsibilities fully” to fund the Defence Investment Plan (DIP) announced by outgoing Prime Minister Keir Starmer. The DIP commits an extra £15bn for the armed forces, including £5bn for drones, but Starmer left £4.7bn to be raised in this autumn’s budget. Another £10.3bn is unfunded through Whitehall cuts and asset sales. Burnham admitted he was blindsided: “I didn’t have all of the details, I wasn’t in all the discussions.”
On welfare, Burnham ruled out “crude cuts” that “put people who are struggling in even worse poverty”. Instead, he wants to focus on supporting young people into work through a better balance of academic and technical education, and a guarantee of apprenticeships for every 16- to 18-year-old. He insisted he would stick to Labour’s 2024 manifesto pledges not to raise income tax, National Insurance or VAT, but signalled a shake-up of business rates: higher rates on “warehouses and the major developments we see on the outskirts of our cities” to fund a 20% cut for pubs and lift some high street businesses out of rates altogether.
A central point of contention with the unions is the possible appointment of Ed Miliband as chancellor. Unite leader Sharon Graham has criticised Miliband, saying he would “put a noose around the neck of job creation”. GMB general secretary Gary Smith called the government’s net-zero policies on North Sea oil and gas “shameful” and “economic madness”. But Unison’s Andrea Egan has backed Miliband for the role, according to the Guardian. Wes Streeting, Sir Keir Starmer’s former health secretary, is also being mooted. No job offers have been made.
Burnham is so far the sole candidate for the Labour leadership. If that remains the case, he could become prime minister as soon as 20 July – but first he must navigate the competing demands of the unions, the defence gap, and the need to find a chancellor who can hold the party together.