Burnham vows fiscal stability and bold reforms despite war-driven borrowing pressures
Burnham said he will stabilise public finances while pursuing radical reforms despite high borrowing costs from the Iran war.
Prime Minister Burnham, speaking at the budget and ahead of the Labour conference, acknowledged that the Iran war and other global instability have pushed up borrowing costs, constraining his manoeuvre before the October 28 fiscal event. He argued that stabilising public finances is essential to create the fiscal headroom needed for more ambitious reforms, insisting he is ready to make difficult decisions. Burnham linked his agenda to his late father Roy’s wishes and promised a new direction after a decade of Brexit-related drift and division.
Labour’s chair Bridget Phillipson noted improved poll standings but warned of a tough fight against Reform UK and the Tories, while Burnham dismissed an early election. The conference, held in Liverpool, aims to showcase the party’s renewed energy and vision for change.
Why it matters
The leader’s fiscal stance will shape UK economic policy and Labour’s appeal ahead of the next election.
How this story developed
- Sep 3 Richard Tice condemns Chinese imports while Reform UK merch made in China is on sale
- Sep 4 National Rally leader Jordan Bardella delivered an English speech at Reform UK’s gathering, emphasizing tighter ties with the British party and joint immigration control.
- Sep 4 Reform UK invited Bardella to speak at its Birmingham conference.
- Sep 6 West Midlands Police have issued a call for the protester to come forward to assist their inquiry.
- Sep 7 The memorandum was signed, moving the idea from conference discussion to a formal agreement.
- Sep 21 Sources close to No 10 confirm that Burnham and his chief of staff James Purnell have not decided on an early poll, even as Labour enjoys a bounce in the polls. The rumours intensified after Reform UK received a record £72 million in crypto-linked donations. Royal aides made discreet inquiries at the Goodwood Revival, receiving an unofficial reassurance that no election is imminent. Meanwhile, Labour’s internal fundraising events proceeded without the prime minister, who was mourning his father’s death.
- Sep 22 YouGov's latest seat-by-seat model indicates Reform UK would secure just 123 seats if a general election were called today, a sharp drop from a similar poll a year ago. Labour is forecast to lead with 241 seats, followed by the Conservatives at 130, while the Liberal Democrats hold steady at 71. The results point to the first hung parliament since the 2010 coalition. Reform also appears to be losing its high-profile MPs Robert Jenrick and Suella Braverman back to the Conservatives. The party's decline follows recent scandals involving alleged off-the-books polling and the suspension of aides Dan Jukes and James Orr, prompting a Met Police investigation.
- Sep 25 A new YouGov poll shows Reform UK level with the Conservatives and behind Labour.
- Sep 26 Labour’s party chair urged vigilance at the start of the Liverpool conference amid a poll surge.
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