Future PM Andy Burnham to deal with the nation in the present day at midday as main warning issued

The International Monetary Fund has urged the UK Government to avoid increasing public spending in the face of pressures such as rising household energy bills

Prime Minister-in-waiting Andy Burnham will address the nation today, as he’s crowned leader of the Labour Party. The Makerfield MP is set to appear at the Party’s special conference around midday today, where he will officially be named as the party’s new leader.

He will then be crowned Prime Minister on Monday, but not before he’s given a speech today that’s set to detail what Britain is to expect from him as leader. According to several sources, he is expected to praise his predecessor, talk about improvements to the NHS, investment in public services, and the passing of the Hillsborough Law.

He is also to set out his vision for a “renewed” Labour government that will focus on “driving growth in every postcode” and “returning power to communities” – and that it will be a government that will have the “courage to fix the big things that politics has neglected” and the “conviction to argue for our plans”.

However, a powerful global organisation is calling on Andy Burnham’s incoming government to resist boosting public spending despite pressures including soaring household energy bills. The International Monetary Fund (IMF) released a fresh report on the UK as Mr Burnham prepares to assume control as the nation’s new prime minister.

The Washington-based fund, which represents around 190 member countries, said the Government should attempt to remain focused on its plans to expand the economy and stabilise debts in an increasingly volatile world susceptible to shocks.

“This calls for a cautious approach to new fiscal pressures: the authorities should be very selective in accommodating new demands and reprioritise, while sticking to the deficit reduction plan,” the report stated. “Future spending reviews should focus on reallocating resources across departments, rather than increasing total spending.”

Specifically, it pressed the Government’s response to the Iran war energy shock to remain “tightly targeted, temporary and budget-neutral”. This means steering clear of universal support schemes like that rolled out following the 2022 energy crisis, which limited annual energy bills for the typical household at £2,500.

“Broad-based measures, such as cuts in energy taxes, outright energy price caps, or generalised subsidies, should be avoided, as they are costly, difficult to unwind, and weaken price signals,” the IMF cautioned. It also underscored increasing expenditure pressures due to an ageing population, defence commitments and the shift away from fossil fuels.

The IMF has previously commended Chancellor Rachel Reeves ‘ fiscal strategy for achieving a good equilibrium between reducing the UK’s deficit and “growth-friendly spending” and investment into sectors such as health and education.

However, Reeves seems to have accepted that she will not continue as Mr Burnham’s chancellor, although the likely next prime minister has not yet confirmed any Cabinet appointments. Ed Miliband is widely seen as a potential successor for the crucial role.

In response to the IMF’s report, Ms Reeves stated: “We have the right economic plan to build a stronger, more secure Britain, with the IMF backing the choices I’ve made to put the country in a much stronger position than it was two years ago.”