Tories urge opposition leaders to slash welfare spending to tame inflation
The Conservative Party has pressed Andy Burnham and John Healey to reduce the welfare budget at the upcoming Budget as a way to curb rising inflation.
Ahead of the autumn Budget, the Conservative Party called on Andy Burnham and John Healey to confront what it described as Britain’s economic peril by trimming the welfare bill. Richard Fuller, the shadow chief secretary to the Treasury, claimed the government intends to raise taxes rather than curb spending. Labour countered, accusing the Tories of a lack of self-awareness reminiscent of the 2022 mini-budget that unsettled markets.
The party also highlighted recent remarks by Burnham that national security should not come at the expense of social security. Downing Street insisted that any welfare reduction would be balanced with defence funding and would not involve "crude cuts". Meanwhile, the Prime Minister signaled readiness to make difficult decisions to protect the economy, warning that the next statement will be challenging amid persistent inflation and volatile energy costs.
Why it matters
Welfare spending decisions will shape inflation control and affect millions of UK households.
How this story developed
- Sep 1 Prime Minister Andy Burnham to Address Commons on First Day Back
- Sep 3 Burnham announced a plan to extend devolution to all parts of England and to increase public control of utilities.
- Sep 3 During the opening of Reform UK's three-day conference in Birmingham, deputy leader Richard Tice warned against Chinese buses and goods, urging support for British manufacturing. Yet the nearby merchandise stall offered caps, hoodies and water bottles that were produced in China alongside items from Bangladesh, Pakistan and India. Prices ranged from £5 for pins to £45 for hoodies, with a UK-made Nigel Farage tea towel costing £20. The speech also highlighted the party’s broader business agenda and its leader Nigel Farage’s recent controversies.
- Sep 4 Bond yields surged to their fastest rise since the 2022 mini‑budget, wiping out £12 billion of fiscal headroom.
- Sep 6 Burnham pledged to transfer failing utilities into public ownership.
- Sep 6 John Healey will launch a £150 million fund aimed at supporting university spin-outs and other high-growth companies across northern England.
- Sep 6 West Midlands Police have issued a call for the protester to come forward to assist their inquiry.
- Sep 7 Healey also pledged steps to curb borrowing costs, energy bills, regulation and labour expenses on UK businesses.
- Sep 9 Prime Minister Andy Burnham said he will not trim social security programmes to meet the 3 % of GDP defence spending goal and gave no timetable for reaching it.
- Sep 9 Burnham publicly rejected the welfare‑cut funding plan.
- Sep 13 Burnham faced his first Prime Minister's Questions where opposition members pressed him on funding for his agenda.
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