Andy Burnham and Kemi Badenoch Clash Over Rising Borrowing Costs

Prime Minister Andy Burnham and Conservative leader Kemi Badenoch clashed during Prime Minister's Questions on September 3, 2026, as UK government borrowing costs reached their highest levels since June 2008. The exchange occurred amid significant market volatility, with investors selling off government bonds and pushing 10-year yields to a 28-year high.

Badenoch accused Burnham of being a "people-pleaser" and a spendthrift, arguing that his promises to reduce the benefits bill through increased spending are unsustainable. She pressed the Prime Minister to clarify whether he would fund these commitments through higher taxes, more borrowing, or spending cuts. Badenoch further claimed that current borrowing costs exceed those seen during the Liz Truss mini-Budget.

Burnham rejected these claims, attributing market vulnerability to the Conservative legacy of failing to address growth and debt. While he declined to detail the upcoming autumn budget at the despatch box, deferring to Chancellor John Healey, he highlighted early moves to cut VAT on electricity bills and business rates for pubs and music venues. Burnham maintained that his government remains grounded in fiscal responsibility and intends to increase defense spending to 3% of GDP by 2030, though he refused to rule out tax increases.