- UK borrowing costs rose to an 18-year high on Wednesday, causing concern among investors.
- During his first PMQs, Burnham was pressed by Badenoch on spending cuts and tax rises.
- Burnham blamed the previous Conservative government for market turbulence, stating that the "turbulence on global markets are because of that exposure that they left behind".
- Burnham announced an early Budget date in October with Chancellor John Healey to reduce speculation about government spending.
- Interest rates on government bonds have been increasing, with the yield on a 10-year bond at its highest level since 2008, and the yield on a 30-year bond at its highest since 1998.
- Badenoch criticized Burnham, stating that he has not ruled out tax rises and claiming that the previous budget failed because spending was announced before the money to pay for it.
At his inaugural Prime Minister's Questions, PM Burnham faced tough questions regarding the UK’s soaring borrowing costs, which have reached an 18-year high.1
Badenoch demanded answers on potential tax increases and spending cuts to manage the escalating debt.26
Interest rates on government bonds have surged, with the yield on a 10-year bond at its highest since 2008 and a 30-year bond at its peak since 1998, indicating increased borrowing costs for the government.5
Burnham attributed the current economic turbulence to the previous Conservative government, stating, “the turbulence on global markets are because of that exposure that they left behind.”
He emphasized his commitment to fiscal responsibility, asserting, “This will be a government grounded in fiscal responsibility.”
In response to Badenoch's criticisms, Burnham remarked, “Can I also say to her and the whole of her new shadow cabinet, the majority of whom were part of a government that lasted for 49 days, a short-lived government that crashed confidence in the economy and hammered people's mortgages.”
As the government prepares for an upcoming budget, the pressure mounts to address the financial challenges facing the UK, with Burnham indicating that “we will help reduce cost-of-living pressure on our constituents.”
“Badenoch accused Burnham of being a 'spendthrift prime minister' who cannot say where money will come from, citing Lord O'Neill's warning that his Commons statement was 'the last thing investors wanted to hear'. Burnham countered by blaming the previous Conservative government and committing to fiscal responsibility, with an early Budget set for October.”
