Burnham refuses to rule out more borrowing and blames Tories for debt crisis

Andy Burnham has not ruled out the possibility of further borrowing or raising taxes to finance his government's spending plans. He blamed the UK's vulnerability to the global bond rout on the previous Conservative government, stating that spiralling debt costs are a result of their "exposure". When confronted by the Tory leader, Kemi Badenoch, Burnham refused to rule out additional tax increases or more borrowing, only stating that the government was taking necessary actions to reduce debt.

He reaffirmed his commitment to fiscal responsibility and his intention to lead a government grounded in fiscal responsibility. Burnham also criticized the Tories for their "14 years of stagnant growth" and "14 years of debt rising" before attacking shadow chancellor Andrew Griffith. The opposition leader accused the Conservatives of having overseen a "spendthrift people-pleaser" who cannot provide clarity on where the money is coming from.

The Prime Minister's first PMQs was overshadowed by rising gilt yields, which pushed up government borrowing costs to levels not seen in nearly 20 years. Economists warned that Healey is more likely to announce tax hikes at the Budget due to the costs of higher gilt yields, which could reduce the fiscal headroom significantly. Despite his efforts to end political point scoring, Burnham criticized the Tories' record in government and demanded a clear pathway to reaching 3% of GDP on defence by 2030, a commitment he claimed he had already made.