Andy Burnham, who became Prime Minister less than two weeks ago, has launched a series of high-profile policy announcements aimed at addressing issues such as energy costs, public transport, homelessness, and business support. These proposals include abolishing VAT on electricity bills, reinstating a £2 bus fare cap, committing £340 million to ending rough sleeping, and cutting business rates for pubs and clubs by 20%. His agenda also includes plans for a National Care Service, increased council housing, and raising defence spending to 3.5% of GDP by 2035.

Despite the ambitious scale of these initiatives, there is growing concern among commentators and analysts about the affordability and funding of Burnham’s agenda. The combined cost of these new policies runs into billions of pounds, with the abolition of VAT on energy alone expected to cost £850 million and the bus fare cap over £500 million. Additional spending on social care reforms and foreign aid—planned to return to 0.7% of GDP, representing an estimated £14 billion increase—also adds to the fiscal pressure.

To date, the government has provided limited details on how these policies will be financed. It has been suggested that a possible 1.8% rise in income tax could fund some social care reforms, though the full budget strategy is expected to be outlined in the autumn Budget. Burnham has rejected proposals for cuts to disability benefits, despite a significant rise in claims since the pandemic, particularly related to mental health conditions. Meanwhile, his plans include increasing support for young people, such as offering £4,500 per year in apprenticeship benefits to families on Universal Credit.

Critics emphasize the risks of rising government expenditure against a backdrop of growing public debt and economic challenges. Interest payments on government borrowing reached £11.8 billion in June alone. Some analysts warn that without clear plans to raise revenue or reduce spending elsewhere, the government risks further fiscal instability. They also highlight concerns about declining numbers of wealthy taxpayers and millionaires, which could limit the capacity for increased revenue through higher taxes on the rich.

Further scrutiny has been directed at Burnham’s approach to other pressing national issues. Observers have noted an absence of detailed positions on illegal migration, especially amid increased arrivals and broader global migration challenges. The government’s stance on military spending has also drawn attention, with Burnham refraining from committing fully to previous targets such as maintaining 3% of GDP on defence.

Burnham’s initial fortnight in office has elicited mixed reactions. Supporters argue his focus on social welfare and public services is necessary to address long-standing challenges. In contrast, some view his approach as overly focused on spending without adequately addressing fiscal responsibility or broader policy complexities. As his government prepares for the upcoming Budget, questions remain about how Burnham will balance the demands of his ambitious agenda with the realities of public finance and economic management.