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Burnham pressed on economy at first PMQs as UK borrowing costs rise
BBC • • general
Key Points:
- Conservative MP Kemi Badenoch challenged Prime Minister Burnham to clarify where spending cuts would be made and how rising UK debt would be managed, following an 18-year high in government borrowing costs.
- Burnham blamed the previous Conservative government for current market turbulence and emphasized that his first moves included tax cuts, with a Budget scheduled for October to address fiscal plans.
- Economist Lord Jim O'Neill, who praised Burnham's early efforts but declined a government role, warned that recent statements had unsettled investors and highlighted the need to address pension and welfare spending.
- Government bond yields have reached levels not seen since the late 1990s and 2008, increasing borrowing costs and potentially limiting spending options ahead of the upcoming Budget.
- Burnham criticized Badenoch's shadow cabinet reshuffle for including members linked to the short-lived Truss government, accusing the Conservatives of damaging economic confidence and mortgage stability.
