- The City warns of "markets chaos" if the new prime minister does not rein in spending, cautioning that he cannot "borrow his way out of this".
- The Telegraph notes Burnham refused to rule out more borrowing during his first Prime Minister's Questions on Wednesday.
- The Telegraph previews a speech from Conservative leader Kemi Badenoch, who will vow to increase defence spending to 3% by 2030 by cutting Britain's welfare bill.
- The Conservative leader "piled pressure" on the prime minister on Wednesday, noting it is a commitment Burnham has so far failed to match.
- The Sun reports "One in the eye for Andy" following a meeting between Burnham and French President Emmanuel Macron at the British Museum on Wednesday, where Macron offered "just 45 more do-nothing cops" to help deal with the "small boats crisis".
- The Guardian reports that Chancellor John Healey is facing "sharply reduced" spending power after a "days-long sell-off of government bonds", and Burnham's first PMQs were "widely seen" as an attempt to soothe investors.
- The Financial Times reports Burnham is worried that a "Made in Europe" procurement plan will post "significant problems for British steel", and he has named steelmaking and farming as sectors he wants to protect in any new EU-UK deal.
- The Daily Express reports fresh calls for the triple lock to be axed to save money amid Burnham's "soaring borrowing costs", but campaigners warn voters will "punish him at the ballot box" if he scraps the pension safeguard.
The City has issued a stark warning to Prime Minister Burnham, indicating that failure to rein in spending could lead to 'markets chaos'. The warning comes as Burnham faces increasing pressure from Conservative leader Kemi Badenoch, who has committed to raising defense spending to 3% by 2030 by cutting welfare costs.3
During his first Prime Minister's Questions, Burnham did not rule out further borrowing, which has raised concerns among investors. The Guardian reported that Burnham's attempts to calm bond markets were seen as crucial, especially after a days-long sell-off of government bonds threatened his budgetary plans. Chancellor John Healey is now facing the prospect of 'sharply reduced' spending power.78
Badenoch's commitment to defense spending has intensified scrutiny on Burnham, who has yet to match this pledge. The Telegraph noted that the pressure is mounting, with defense select committee chair Tan Dhesi urging the Prime Minister to 'urgently commit' to additional funding for defense. Dhesi emphasized that 'vibes alone' would not suffice to ensure national security.
As Burnham navigates these challenges, he is also concerned about the implications of a 'Made in Europe' procurement plan, which he believes could pose significant problems for British steel and farming sectors. The Financial Times highlighted his focus on protecting these industries in any new EU-UK deal.
With soaring borrowing costs and calls to scrap the pension triple lock, Burnham is warned that voters may 'punish him at the ballot box' if he fails to address these pressing issues.
“The Guardian reports Chancellor John Healey faces 'sharply reduced' spending power after a 'days-long sell-off of government bonds', and Burnham's first PMQs were 'widely seen' as an attempt to soothe investors. Meanwhile, Macron offered 'just 45 more do-nothing cops' to help with the 'small boats crisis'.”
