Former cost-of-living tsar warns Burnham to stop ‘acting like Father Christmas’
The government’s former cost-of-living tsar has cautioned that Andy Burnham must cease his “Father Christmas” approach, emphasizing that British businesses should not be treated as a “piggy bank” for government funds, reports BritPanorama.
Richard Walker, who served as Labour leader Sir Keir Starmer’s cost-of-living champion, made these remarks shortly before Burnham officially took office. He highlighted the necessity for the prime minister to start making “unpopular decisions” as he prepares for the upcoming Budget, indicating that “real crunch time is coming up now.”
In an interview with LBC, Walker expressed concern over Burnham’s current approach. He stated, “For the last 50 years, chancellors on the left or the right haven’t been too dramatic on raising taxes or reducing spending because they’ve been able to borrow a little bit more.” However, he contended that increasing borrowing is no longer a viable option.
Walker asserted, “Therefore, tough choices are now needed.” He further articulated that businesses should not continually be viewed as a source of revenue, highlighting their role in driving economic growth. “We cannot, for the sake of all of us, keep taxing business,” he noted, calling for a reassessment of expenditure strategies.
He added, “The real crunch time is coming up now. You know, the nights are drawing in, it’s getting colder, and it’s time to make some hard choices.” This statement comes in light of Burnham’s ambitious pledges since assuming office, including a £2 cap on bus fares and measures to reduce VAT on household electricity bills as well as efforts to end rough sleeping.
On Wednesday, Burnham acknowledged that next month’s Budget would be “challenging” following official reports indicating that inflation has reached a five-month high. These developments have increased scrutiny on how the government will fund its commitments.
Chancellor John Healey is tasked with delivering the first Budget since Burnham’s accession, amidst concerns regarding the repercussions of Donald Trump’s conflict with Iran and the implications for UK defence funding.
This political situation is compounded by rising inflation rates, further exacerbated by global economic instability. Bank of England governor Andrew Bailey has forewarned that interest rates may need to increase if the situation in Iran persists.
Burnham reiterated to the media that the current economic climate poses a significant challenge but emphasized a commitment to safeguarding people’s living standards. “It is going to be challenging, because the picture around the world is challenging, particularly the situation in the Middle East, and we will look carefully at all those things,” he stated.
