Andy Burnham guidelines out ‘crude cuts’ to advantages as he outlines tax shake-up
Prime Minister-in-waiting Andy Burnham has said he will not push through ‘crude cuts’ to welfare which will push people into greater poverty, and said Brits need more ‘breathing space’ on energy costs
Andy Burnham vowed not to make ‘crude cuts’ to benefits and pledged action on energy costs
Andy Burnham has ruled out “crude cuts” to benefits that would push people into even greater poverty.
The Prime Minister-in-waiting insisted he would take a “different approach” to bring the welfare bill down with a focus on supporting young people into work. He also vowed not to tear up Labour’s manifesto pledges on tax and said Britons need more “breathing space” on energy costs.
His welfare vow follows last summer’s ill-fated attempt by Keir Starmer’s government to slash £5billion from sickness and disability benefits in plans that were eventually abandoned. Mr Burnham told LBC: “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.
“There’s a different approach, which is looking at two things that can be done differently to get the overall benefits bill down. One of those is how we support young people.”
The Makerfield MP, who is expected to become Prime Minister in less than three weeks, added: “I will not defend an education system that is overly focused on the university route, and does not lay out paths to a technical qualifications for our young people. Too many young people get to Year 10 at school and they can’t see where school is taking them, because the system isn’t focusing on those young people.
“We need an education system balance between academic and technical. And then at 16, I believe we need the guarantee of a work placement for 16 to 18 year olds, apprenticeships for every 16 to 18 year old who wants one.”
He went on to say he would not tear up Labour’s manifesto pledges on tax – which ruled out hikes to National Insurance, VAT and income tax – but said there is scope to look at business rates without breaking promises. Mr Burnham stated that charging companies more for giant warehouses and giving breaks to smaller companies is high on his agenda.
He said: “I stick by the manifesto and the promises that it made, so let me be absolutely clear about that. But there is some room within that manifesto for movement on tax.
“So if you take business rates, for instance, I believe there is a case for higher business rates on warehouses and the major developments we see, on the outskirts of our cities so that we can cut business rates for pubs. And I’ve proposed a 20% cut and lift some high street businesses out of business rates altogether.”
And on energy costs he said Brits are paying too much – and he would focus on driving these down. Mr Burnham stated: “People are paying too much, but businesses are also paying too much.
“And that is certainly true of energy. And what I would do if successful is lay out a plan for more public control over water, energy, transport so that over the period we can get those bills down, fares down, and give people and give businesses breathing space.
“Britain needs more breathing space. One thing I heard on doorstep after doorstep in Makerfield, we do need to be serious about putting more money back into people’s pockets.”
He said he would handle MPs differently, alluding to discord with Mr Starmer’s leadership. He said: “I do think Westminster needs quite significant culture change. I said this week it didn’t feel like the place I left when I came back last Monday. It does feel, a more fragmented place, unhappier in many ways.
“And I think we do need to rediscover a sense of team spirit. I personally don’t think the whip should be used to punish people who have a vote on a matter of conscience.”
Asked if he was criticising Mr Starmer he said: “I didn’t see that (MPs being suspended) done in the Blair and Brown years. And I don’t think it builds the sort of common spirit that you need, the sense that everybody is involved, that people can take a different position, and it’s not the end of the world if they if they do that more broadly.
“I do think we’ve got to find a better way of involving people in the work in the work of the government. MPs have got a lot to offer, but I also think we need to empower them.”
He also voiced his frustration over speculation about who will be his Chancellor following days of speculation. Wes Streeting, Shabana Mahmood and Ed Miliband are all said to be in the running, but Mr Burnham said he has yet to make up his mind.
Pressed on whether he had chosen his Treasury chief, Mr Burnham said: “No, I haven’t made those decisions. And deliberately not.”
He went on: “It’s been a little frustrating for me in the last two weeks, because Westminster goes into its normal mode and it wants to endlessly speculate about personalities before policy and before direction. And I very deliberately have said ‘no, I’m going to set out a new direction for the country’.”
