Andy Burnham on brink of huge decision – we face 5 years of misery | Personal Finance | Finance
Weโve had small, popular measures, such as cutting VAT on electricity bills, capping bus fares at ยฃ2, and vague talk about easing the cost-of-living crisis. Big decisions on defence spending, social care and council house building have been pushed down the road. Many have seen this as a sign of weakness. That Burnham would rather court cheap popularity than tackle the tough decisions facing Britain today. But could it be something else?
Thereโs growing speculation that our new PM has something else up his sleeve, and is deliberately avoiding anything that could derail it. Heโs enjoying his bounce, and would rather build the Burnham brand with voters by pumping out easy-going TikTok videos than start fights he might lose. That’s because he’s saving it up for the big one. By calling a snap election. Not in the spring, as many have suggested, but in November.
That could see the nation trudging to the polls in just two months’ time. The more I think about it, the more attractive it must look from Burnhamโs point of view. But it relies on a few things going right first. So Burnham will have to hold fire, before making his move.
First, we have the Labour Party conference in Liverpool, from Sunday September 27 to Wednesday September 30. Burnham will use it to rally the faithful and deliver a set-piece speech designed to convince the nation heโs prime minister material. If that goes well, he moves onto the second stage of his plan.
On October 8, thereโs a by-election in Holborn and St Pancras, triggered by former PM Keir Starmer stepping down. Green Party leader Zack Polanski is contesting the seat, but if Labour sees off mad Zack, Burnham will feel ready to go for the big one. A short, sharp election campaign could work in his favour. Voters may be grateful that he isnโt stretching things out. The shortest an election campaign can legally last is 25 working days. The Daily Telegraph has suggested Thursday November 19 as a possible date.
The Budget is due on October 28, so Burnham will have to decide what to do about that. It might be possible to postpone it until after the election. Otherwise, it wonโt contain much more than a few basics and cheap giveaways. And Burnham has another reason to go for broke. In fact, I think itโs the strongest of all.
Weโre heading towards a winter of discontent. Global inflation and energy prices are soaring, thanks to the wars in Iran and Ukraine. That will drive gas, electricity and food bills even higher, while a predicted four interest rate hikes next year could push up mortgage costs too. All of which will make voters very grumpy, and less likely to vote for the incumbent PM.
An early election before all that hits the fan looks like a sound move. Especially with Kemi Badenoch growing in authority by the day, while Nigel Farageโs Reform UK is distracted by a row over donations. If Burnham goes for it and gets his mandate, then we’re in trouble.
Yesterday, one of Burnhamโs former allies warned that he’s leading an old-style socialist tax-and-spend government. We certainly. Five years of it, if the PM has his way. He rode his luck to get into Westminster, and will be hoping it holds for a couple more months.
If Burnham calls and wins an election, he can ditch Labour’s manifesto pledge not to hike income tax, national insurance and VAT, and really go for it. At which point, we get the real Budget. That’s when the tough decisions will start rolling in. And theyโll be especially tough for taxpayers, who’ll pay the price of a Labour victory, bringing another five years of misery.