British Prime Minister Burnham promises radical changes in the country — The Guardian

UK Prime Minister Andy Burnham said he is ready to make difficult decisions to bring about radical change in the country, despite pressure on public finances, inflation and rising borrowing costs. Ahead of the Labour Party conference, he stressed that financial stability is a necessary condition for broader reforms.

As The Guardian reports, Burnham acknowledged the difficulty of the situation ahead of the budget scheduled for next month. According to him, the government must demonstrate its willingness to confront difficult problems, as only stability can make a deeper transformation of the state possible.

Budget constraints and reforms

The prime minister noted that global economic shocks, including the conflict in Iran, had increased inflationary pressure in Britain and limited the government's options. He also acknowledged that his actions in tax and budget policy are constrained by commitments set out in Keir Starmer's election manifesto.

Burnham rejected suggestions of an early general election before 2029 and said he had not discussed such an option with his team. He stressed that he wants to focus on solving current problems rather than on electoral strategy.

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Burnham criticised previous governments for failing to address difficult issues of social care, housing supply and youth unemployment. He also announced plans to introduce a new home-buying assistance programme for buyers who cannot rely on financial support from their parents. It is planned to be funded by reallocating existing budget funds rather than through additional borrowing.

Energy, social policy and political donations

The head of government played down expectations of additional support for households amid an anticipated increase in the energy price cap from January. He recalled the abolition of VAT on electricity bills from next week.

Burnham also said he considers welfare spending too high, but does not support sharp cuts to benefits that could push people into crisis. In his view, the system requires long-term reform.

Separately, the prime minister expressed concern about the influence of cryptocurrency money on politics after Reform UK received record donations of £36 million from cryptocurrency billionaires. He did not rule out introducing restrictions on domestic political donations and said he was prepared to consider limits on election spending.