Kemi Badenoch has warned that Andy Burnham would plunge the country into economic instability if he pursued higher public borrowing, arguing that it would push up mortgage costs for families and undermine financial credibility.
The Conservative leader said Mr Burnham’s popularity was based on the fact he “hasn’t had to do anything”, arguing that governing at the national level would expose him to difficult fiscal decisions.
Speaking on Sky News’s Sunday Morning With Trevor Phillips, Mrs Badenoch said: “He’s only popular because he hasn’t had to do anything. Politics is about making difficult decisions.”
She added that higher borrowing plans associated with Mr Burnham would feed through into the wider economy. “That’s going to hit everybody’s mortgages; that’s going to hit borrowing costs for this country. It’s going to put billions on debt interest – you’ll be paying a Burnham premium.”
Mr Burnham, who has repeatedly positioned himself as a challenger for the Labour leadership, has called for greater public control over key utilities, including energy, water and housing, alongside a large-scale council house-building programme.
His allies argue that such reforms are necessary to address what they describe as deep structural problems in the housing and cost-of-living crisis.
In a separate intervention, Mrs Badenoch also criticised other senior Labour figures, including Health Secretary Wes Streeting, saying: “They’re all as bad as each other.”
She argued the party lacked a coherent economic strategy, claiming: “They’ve got no plan for the country.”
Her comments come amid escalating speculation over a potential future leadership contest within Labour, fuelled by manoeuvring around a by-election triggered after MP Josh Simons announced he would stand down to allow Mr Burnham to return to Westminster.
Mr Simons said he believed Mr Burnham’s entry into Parliament would be in the “best interests” of the party and the country, and suggested that a victory could reshape the leadership question.
Asked whether that would amount to “the end” of Sir Keir Starmer’s leadership, Mr Simons replied: “By implication, yeah.”
Keir Starmer has already faced internal tensions over the party’s direction, with disagreements emerging over economic policy, public ownership and relations with Europe.
Mrs Badenoch also criticised reported calls from Mr Burnham and others to reverse Brexit, saying the country should focus on “making the best of leaving the EU” rather than reopening settled debates.
Wes Streeting has previously suggested that Britain’s long-term future lies closer to Europe, while Mr Burnham has also signalled support for closer ties and, in some remarks, potential re-entry.
In an interview with the Daily Mirror, Mr Burnham outlined a programme centred on “reindustrialisation”, stronger public control of essential services and a renewed council house-building drive, arguing that Britain would remain unstable until the housing crisis was resolved.
“Number two, stronger public control of life’s essentials,” he said, citing energy, housing, water and transport as key sectors for reform.
The row highlights growing ideological divisions within Labour between those advocating more interventionist economic policies and others pushing a more cautious approach to public spending and market stability.
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