The Labour Party’s leadership transition has drawn criticism over its policy approaches and personnel choices as Andy Burnham assumes the role of Prime Minister. Reform UK’s Treasury spokesman, Robert Jenrick, recently voiced concerns about Burnham’s Cabinet appointments and proposed economic measures, suggesting continuity rather than change in the party’s direction.
Jenrick pointed to key figures within Burnham’s administration, noting that half of the Cabinet—including the Prime Minister—served under former Prime Minister Gordon Brown. Among those highlighted are Louise Haigh, now leading the Office of the Prime Minister despite a past fraud conviction, Miatta Fahnbulleh, the new Energy Secretary with a strong commitment to net-zero carbon targets, and Lucy Powell, who previously dismissed talk of grooming gangs as “dog-whistle politics,” now overseeing education. According to Jenrick, this lineup signals a return to familiar political patterns despite Burnham’s campaign promises of a new approach.
A central focus of the criticism is Burnham’s proposal to remove VAT on energy bills, which Jenrick characterizes as insufficient. He acknowledges the policy as a positive step but argues that it amounts to only minimal savings, comparing it to the value of a second-class postage stamp per week for households. Furthermore, Jenrick claims the VAT cut applies solely to electricity bills, excluding the 86% of households that rely on gas or oil heating, potentially disadvantaging older and lower-income groups.
Reform UK advocates for deeper reductions in energy costs, including scrapping so-called “green stealth taxes” tied to net-zero subsidies, a policy Burnham has not embraced according to Jenrick. He suggests that Burnham’s prioritization of net-zero initiatives comes at the expense of more immediate relief for the cost-of-living crisis.
Questions have also been raised about the financial underpinnings of the VAT cut. Burnham has indicated the measure would be funded by cancelling a Digital ID program; however, Jenrick points out that this program was never allocated funding, casting doubt on the claimed savings. This financing approach, he asserts, echoes what he describes as unrealistic economic proposals from previous Labour figures like Rachel Reeves.
Jenrick further criticizes Burnham for failing to rule out significant tax increases, citing recent calls from Burnham for £38 billion in tax rises, amounting to approximately £3,450 per family. He warns that the combination of familiar personnel and policies could lead to outcomes similar to those experienced under prior Labour governments.
At present, the Labour leadership has not publicly responded to these critiques, leaving the debate on its economic strategy and priorities ongoing as the new government begins its tenure.
