Andy Burnham sparks fears of huge tax hikes in just WEEKS as new PM faces devastating £14BILLION black hole

Sep 2, 2026 - 09:11
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Andy Burnham sparks fears of huge tax hikes in just WEEKS as new PM faces devastating £14BILLION black hole

Andy Burnham has sparked fears of huge tax hikes in his first Autumn budget in an attempt to balance the books.

The Prime Minister repeatedly declined to answer questions about whether he would raise taxes as he faces a £14billion shortfall.

Ahead of his first Prime Minister's Questions, Mr Burnham faces a surge in gilt yields that will squeeze his plans for higher spending, with Britain’s borrowing costs rising at one of the fastest paces across the globe.

Interest rates on 10-year gilts have reached their highest level since 2008.

The cost of borrowing over 20 years rose to its highest level since 1998, a clear indicator of market stress.

With the markets growing increasingly stressed, Mr Burnham will face off with Kemi Badenoch in his first PMQs today.

The Prime Minister faced scrutiny for the first time in the chamber yesterday, in which he blamed Brexit and Margaret Thatcher for Britain's "low growth and stalled regeneration”.

Mr Burnham said while he will continue what his predecessor, Sir Keir Starmer, had started, he "will not hesitate to make changes".

The Prime Minister added: "None of this is easy, but I did what I always do, and that is to apply my values to a challenging situation and a care for people, which I spoke about in Downing Street.

"I believe the public will support me in recognising the clear difference between those who have served their time and more, and those who have not.

"We will bring forward legislation soon, but we can find a solution to end this injustice, which balances public safety and basic fairness, and I urge colleagues on all sides of the House to help us do that."

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Labour urged to strip benefits from parents whose children terrorise communities with anti-social behaviour


Former Conservative leader Sir Iain Duncan Smith called on ministers to "re-take our streets from the gangs" as a major report proposed tougher punishments for problem households.

The Centre for Social Justice (CSJ), which Sir Iain chairs, has called for families living in social housing to face eviction where a member of the household persistently engages in anti-social behaviour.

The proposed powers would apply regardless of the age of the person responsible, meaning parents could ultimately lose their homes over the repeated behaviour of their children.

Unpaid fines for anti-social behaviour could also be deducted directly from Universal Credit at 15 per cent of the standard allowance.

The proposals come after the proportion of adults who said they had witnessed or experienced anti-social behaviour rose to 41 per cent in 2025/26, up from 36 per cent the previous year, according to the CSJ.

Sir Iain described anti-social behaviour as "the single greatest issue affecting the law-abiding public".

He said it had become "a case of police and councils turning a blind eye as it gets worse".

Sir Iain added: "We must re-take our streets from the gangs for the sake of law-abiding citizens.

"I urge ministers to take this report and its proposals seriously."

Kemi Badenoch looks for 'bounce' after reshuffle as Tories and Reform battle for local by-elections gains


Kemi Badenoch is looking for a "bounce" in regions across Britain after reshuffling her shadow cabinet.

The Conservative leader sacked Sir Mel Stride as shadow chancellor and appointed former business secretary Andrew Griffith in his place.

Claire Coutinho, previously the shadow energy secretary, will replace Mr Griffith as shadow business secretary, while Sir Mel will join Tory big beasts Dame Priti Patel and Sir James Cleverly on the backbenches amid the ongoing shake-up.

Six council wards are up for grabs across England, Scotland and Wales.

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Shabana Mahmood hands Cleveland Police £2million to help tackle Middlesbrough crimewave


Shabana Mahmood

Shabana Mahmood has handed Cleveland Police an extra £2million to tackle serious crime following a wave of incidents in and around Middlesbrough.

The cash injection comes after around 200 officers from outside Cleveland were drafted in to support the force's crackdown on organised crime following the deadly A66 crash last month.

PC Matthew Blades, 37, and PC Tom Clough, 38, were killed when a Volkswagen Passat being pursued by police was driven the wrong way along the dual carriageway and struck their marked armed response vehicle on August 22.

Five young men travelling in the Passat were also killed, with Cleveland Police saying they may have had links to "serious and organised criminal activity".

The Home Secretary told MPs: "I can also announce today that, in light of the situation the force has faced, we will allocate an additional £2million to Cleveland Police to tackle serious crime in the area."

Ms Mahmood paid tribute to PC Blades as a "devoted father" and PC Clough as a "hero" to his family.

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