https://morningstaronline.co.uk/article/city-piles-pressure-cuts-burnham
Prime Minister Andy Burnham departs 10 Downing Street, London, to attend his first Prime Minister’s Questions at the Houses of Parliament, September 2, 2026PM tells MPs he want welfare cuts and backs Nato demands for soaring military spending
BOND markets piled pressure on Prime Minister Andy Burnham today as government borrowing costs rose ahead of his first Budget.
The City and big business are now mobilising to discipline the new government and keep it in line with Treasury economic orthodoxy.
Mr Burnham bent before the storm at his first Prime Minister’s Questions (PMQs) today and again committed himself to abiding by the Treasury rules so beloved of his predecessor.
He also told MPs that he wanted to see cuts in the welfare budget, while backing Nato demands for soaring military spending.
Business leaders queued up to demand action to curb spending, in particular urging an end to the triple lock with protects pensioners’ living standards.
One of Mr Burnham’s own close advisers, former Goldman Sachs economist Jim O’Neill, led the charge, warning that the Prime Minister’s lengthy statement to MPs on Tuesday had raised concerns about his commitment to controlling spending.
Mr O’Neill told LBC radio that it had it had implied “a lot more government spending” which was “the last thing investors want to hear.”
Saying that the rise in interest rates on government debt invoked “Liz Truss days” he called for an end to the pensions triple lock and a “credible” plan to cut welfare spending.
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https://morningstaronline.co.uk/article/city-piles-pressure-cuts-burnham