Politics
Andy Burnham Promises No Benefit Cuts As PM
Andy Burnham has vowed not to make “crude cuts” to Britain’s welfare bill when he becomes prime minister later this month.
The former mayor of Greater Manchester said he would take a “different approach” to help get young people not in employment, education or training (NEETS) into work.
Keir Starmer was thwarted by a Labour backbench rebellion when he tried to cut the benefits bill by £5 billion a year ago.
But speaking to LBC, Burnham – who is on course to take over from Starmer on July 20 – said: “I’m not going to go with the crude cuts to benefit levels that then just put people who are struggling in even worse poverty, and that often creates the backlash, and understandably so.
“There’s a different approach, which is looking at two things that can be done differently to get the overall benefits bill down.
“One of those is how we support young people. I will not defend an education system that is overly focused on the university route and does not lay out paths to technical qualifications for our young people.”
He added: “What I’ve done in Greater Manchester is something that might be looked at more broadly, free bus travel for 16 to 18-year-olds, so that they can access those opportunities.
“In my view, if we did that, and we changed the way we provide mental health support to young people – I believe we can substantially reduce the number of NEETS.
“If you build more council homes, you can bring down the housing benefit bill. You do it over a longer term, in a more sustainable way.”
Burnham also hinted at increasing business rates on firms like Amazon, which build huge warehouses outside towns and cities, and using that money to help struggling high streets.
He said he stuck by Labour’s election manifesto pledge not to increase income tax, VAT or national insurance.
But he said “there is some room within that manifesto for movement on tax”.
“So, if you take business rates, for instance, I believe there is a case for higher business rates on warehouses and the major developments we see on the outskirts of our cities so that we can cut business rates for pubs,” he said.
“And I proposed a 20% cut and lift some high street businesses out of business rates altogether.”
Shadow chancellor Mel Stride said: “Instead of raising taxes Labour should be getting a grip of spending, but Andy Burnham won’t touch the ballooning benefits bill. He will double down on all the mistakes Labour have already made.”
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