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Andy Burnham 'backs the Labour manifesto and fiscal rules' but will change Labour by being 'more optimistic', says Steve Reed

Mr Burnham is expected to give a speech on Monday as he prepares to become new Prime Minister within weeks

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By Alex Storey

Andy Burnham will stick to the Labour manifesto and the party's fiscal rules as Prime Minister but will show a more "optimistic vision of what the future might be", Housing Secretary Steve Reed has told LBC.

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The former Greater Manchester mayor, who was sworn in as Makerfield MP last week, is expected to replace Sir Keir Starmer on July 20, and will unveil a major plan to shift power away from Westminster next week.

But speaking to Lewis Goodall on Sunday, Mr Reed said that Mr Burnham "backs" the Labour manifesto, and will be sticking to the fiscal rules which "delivered stability to the economy for these past two years".

Mr Reed also played down any suggestion of a leadership contest, stating there would be no point given the support levelled for Mr Burnham.

Read more: Andy Burnham’s return to Westminster is much more than a comeback story for Mancunians

Read more: Mahmood asks Starmer to sack immigration minister as article row engulfs Home Office

Steve Reed on LBC.
Steve Reed on LBC. Picture: LBC

He told Lewis: "Andy Burnham showed in the Makerfield by-election he has the ability to project a much more hopeful and optimistic vision of what the future might be.

"That is a very beneficial thing to the Labour Party and to government. There's going to be more focus on devolution.

"That is something Andy and I have been working on together for over ten years. He understands very clearly, having been Mayor of Manchester, that when local areas get more control over decisions that affect them, they are better decisions."

He added: "He has been very, very clear. He backs that manifesto, and he's been clear too about the fiscal rules. 

"He'll be sticking within the fiscal rules because that is what has delivered stability to the economy for these past two years."

Andy Burnham is expected to become PM next month.
Andy Burnham is expected to become PM next month. Picture: Alamy

VAT, income tax and national insurance are the government’s three biggest revenue raisers.

Together, they account for around 60% of total tax receipts.In an effort to avoid raising the taxes on “working people”, the 2024 Labour Party election manifesto explicitly ruled out changes to these rates to fund additional spending plans.

Under new plans under a Burnham government, ministers would be required to adopt a "devolution-first" approach, assessing which powers and funding streams could be transferred out of central government.

He is also expected to signal that infrastructure investment and housing funding will increasingly be controlled at a regional level, including a larger share of the government’s affordable homes budget.

It comes days after Al Carns hinted at challenging for the Labour leadership after the former defence minister laid out his views on what the next Labour leader must prioritise.

Sir Keir Starer announced his resignation last week.
Sir Keir Starer announced his resignation last week. Picture: Alamy

Mr Carns resigned from his post earlier this month amid concerns over the delayed release of the Defence Investment Plan (DIP).

LBC revealed last week that Brits want to see a Labour leadership contest rather than a coronation for Mr Burnham.

Fresh data from Ipsos shows that nearly four in ten (39 per cent) want a contest, compared to 13 per cent who want to see him just take over.

But they are more optimistic about him being a good prime minister, with 35 per cent thinking he would do a good job, and 24 per cent say he’d do badly.

But asked by Lewis if there should be a leadership contest, Mr Reed said: "My preference is that there shouldn't be. We saw what happened with the Conservatives.

Former armed forces minister Al Carns has [previously hinted at contesting the leadership challenge.
Former armed forces minister Al Carns has [previously hinted at contesting the leadership challenge. Picture: Alamy

"I don't want to spend the whole summer where the Labour Party is talking to itself.

"I want this to happen in an as orderly and as smooth a way as it can happen, keeping the party fully united so that with the new Prime Minister in place, we can continue with the job of delivering change for this country.

"That I think is what will be foremost in the minds of the public up and down the country. That this party was elected to be in government. We have to keep focused on the British people through all of this."

He added: "People are entitled to put themselves forward. They're allowed to take a different point of view to the one that I just expressed.

"I'm just saying from my point of view, I think it would be best now, given the weight of support there is for Andy, it seems to me inevitable that even if there's a contest, Andy will emerge the winner"