Andy Burnham stood before a packed hall in central London on Friday and declared: “We will be that version of Labour again.” The Makerfield MP had just been confirmed as Labour’s next leader, backed by 379 of the party’s 403 MPs, and will walk into Downing Street on Monday to replace Sir Keir Starmer as prime minister. In his first speech as leader, he promised to “fix the big things that politics has neglected” and to give people “hope back”. “The country is crying out for it,” he said, acknowledging the party’s poor polling against Reform UK. “This is a last chance to change.”
Burnham inherits a daunting in-tray. BBC Verify has outlined five major policy challenges, starting with the rocketing cost of sickness and disability benefits. Personal Independence Payments (Pip) cost £58bn a year and are forecast to reach £78bn by 2030, with the number of claimants rising from four million to five million. A recent interim report by disability minister Sir Stephen Timms accepted Pip is “not fit for purpose”, but any attempt to tighten eligibility risks a revolt from Labour MPs and disability groups. Burnham has said he wants to cut the welfare bill by encouraging people into work, not through “crude cuts”.
“Andy Burnham becomes Labour leader, vowing to restore hope as he prepares to become prime minister on Monday.”
Defence spending is another pressure point. Starmer’s delayed defence plan only takes spending to 2.7% of GDP by 2030, and former defence secretary John Healey resigned over the issue. A new Nato target demands 3.5% of GDP by 2035, which would cost an extra £24bn a year relative to current plans. Burnham has yet to spell out how he would fund such an increase.
On the economy, Burnham has promised a “new path”, with more public control of utilities like water and a reindustrialisation strategy. Labour MPs are already pushing him to set a target of creating one million production jobs in the next decade. He has given little detail on policy, and cabinet announcements are not expected until Monday. Multiple reports suggest Home Secretary Shabana Mahmood could be his pick for chancellor; the BBC has been told there are “live discussions” over the role.
“I haven’t made any decisions yet about who will be in that top team,” Burnham said. “When I have, you will see it reflects all parts of our party, all communities.” He thanked Starmer for taking Labour from its worst defeat to “one of the best victories in our history”, and insisted he was “ready to lead”. But with opinion polls showing Labour trailing Reform UK for 18 months, and a general election due by 2029, the clock is already ticking on his promise to restore hope.
