Andy Burnham has pledged to take full responsibility for funding Keir Starmer’s Defence Investment Plan, while warning against what he called “crude” cuts to welfare benefits.
The Manchester mayor, widely expected to enter Number 10 within three weeks, made his comments during a radio interview with LBC that offered a window into his governing philosophy.
Burnham pushed back firmly against what he described as unfair “narratives” about his approach to public finances, pointing to his record in government as evidence of fiscal discipline.
“Overall, people can be certain of one thing about me: I am not indisciplined when it comes to the public finances,” Burnham told LBC during the wide-ranging interview.
He added: “I was in the Treasury, I ran the Department of Health. It was tight, but we had a very healthy set of finances.”
Burnham also said: “I actually get frustrated at some of the narratives that people try to put around about me. My record says otherwise.”
The remarks appeared directed at City economists and bond traders, who have repeatedly warned his policies could lead to further borrowing and another spike in debt interest costs.
Burnham acknowledged he was not fully briefed on funding gaps within the Defence Investment Plan, estimated at up to £15bn, despite prior conversations with Sir Keir Starmer.
“I wasn’t in all of the discussions, but to be fair, you know, the government had had an internal process ongoing,” he said, while vowing to meet the spending commitments regardless.
On welfare, Burnham was unambiguous, indicating that immediate benefit reductions would not be a priority and that longer-term reform was the appropriate path forward.
“I’m not going to go with the crude cuts to benefit levels that then just put people who are struggling in even worse poverty, and that often creates the backlash, and understandably so,” he said.
He suggested that meaningful welfare reform should instead be built around expanding apprenticeships for young people and improving access to mental health services over time.
On taxation, Burnham said he would prioritise increasing business rates on warehouses to fund relief for high street venues including bars, restaurants, coffee shops and hairdressers.
He also reaffirmed Labour’s manifesto commitments not to raise income tax, VAT, or national insurance, seeking to reassure voters and markets about his broader fiscal intentions.
Burnham backed his economic credentials by pointing to Manchester’s growth record during his tenure as mayor, though Oxford Economics research has questioned whether those gains spread across Greater Manchester.
He framed his broader governing vision around ending what he called “neoliberalism” and “deregulation,” favouring greater local control over key sectors including water and energy.
Burnham also confirmed he had “deliberately” delayed naming his Chancellor pick, saying he wanted time to “set out a new direction for the country” before finalising senior appointments.