Burnham urged by Tories to 'confront Britain's economic peril' by slashing welfare bill to curb inflation
Labour responded by slamming the Conservatives' “staggering lack of self-awareness” citing the Liz Truss’ mini-budget in 2022
The Tories have urged Andy Burnham and John Healey to "confront the grim reality of Britain's economic peril" by slashing the welfare bill to bring down inflation at the autumn Budget.
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Shadow chief secretary to the Treasury Richard Fuller accused the Government of plotting tax hikes to fund its plans instead of curbing spending.
He said: "“The facts facing the Chancellor are stark as he prepares his first Budget. Yet there is no sign that either John Healey or Andy Burnham will confront the grim reality of Britain’s economic peril.
“Instead of cutting spending, Labour want to use tax hikes and ever-greater debt to cover the growing chasm in their sums.
"That could spell disaster for Britain, as the bond markets rail against a return to the dark days of the 1970s.”
Labour responded by slamming the Conservatives' “staggering lack of self-awareness” after former prime minister Liz Truss’ mini-budget that caused market turmoil in 2022.
The Tories have heightened their attacks over welfare spending in recent days after Burnham said national security cannot “come at the expense of social security.”
Read more: Burnham should cut welfare to fund defence, Tories say as he faces friendly fire in first PMQs
The Government is under mounting pressure to set out how it will reach the target of spending 3% GDP on defence by 2030.
Newly appointed chancellor John Healey quit as defence secretary under Sir Keir Starmer’s administration in a row over funding, arguing that it was necessary to reach 3% by 2030.
However, at the latest PMQs, the Government pushed back the 3% spending commitment to Spring next year.
Conservative leader Kemi Badenoch called on Mr Burnham at PMQs to fund defence spending by slashing welfare.
Mr Burnham responded that the Government was committed to hiking defence spending the "Labour way" and bringing down the benefits bill but not through “crude cuts” - with Ms Badenoch responding on LBC afterwards that the party was "addicted to welfare".
The Prime Minister has warned that a difficult Budget is in store for Brits following inflation rising to 3.1%.
The Office for National Statistics (ONS) revealed that inflation accelerated to a five-month-high of 3.1% last month as higher fuel prices and airfares pushed up the cost-of-living for Britons.
Speaking after the results were published on Wednesday, Andy Burnham vowed to ensure the economy “remains on track”, but warned he is prepared to take “difficult decisions” to do so.
The government has been linked to scrapping the Triple Lock in the financial review, but Emma Reynolds, the chief secretary to the Treasury, has told LBC that this will not happen.
The Chancellor John Healey previously said the Budget will “move money and power out of Westminster” and into “every postcode around Britain”.
The party is reportedly considering extending the mansion tax to properties worth over £1.5 million – a policy which could impact nearly 300,000 homes.
Lowering the threshold was described by two government sources as a “live discussion” in the Treasury
A Labour party spokesperson said: “The lack of self-awareness from the Tories is frankly staggering. They left families across the country with spiralling bills and sky-rocketing mortgages. Rather than apologise, their new shadow chancellor said the economy-crashing mini-budget ‘wasn’t all bad’.
“While the Conservatives continue to defend the mistakes that crashed the economy, Labour is focused on delivering for working people: easing cost of living pressures, getting more people into work, and help to drive growth in every corner of the UK.”
Chancellor Mr Healey will deliver the Budget on October 28.