Summary

  • Kemi Badenoch has pressed Andy Burnham on how much the UK pays to borrow money at his first Prime Minister's Questions since taking office

  • Asked how he plans to tackle rising debt costs, Burnham blames the "turbulence on global markets" on the previous Tory government - and says "we are turning that corner"

  • Badenoch says the markets are worried about a PM who "wants to say yes to everyone" and asks if he plans to raise taxes; Burnham says his first moves were to "cut tax"

  • The cost of borrowing nudged higher earlier, reaching a new 18-year high - after rising sharply in recent weeks

  • The UK is already forecast to pay £135bn on debt interest in 2026/27 - that's 50% more than on defence. See the breakdown here

  • The prime minister emerged from PMQs without major problems - but it felt like a familiar show, writes Nick Eardley

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  1. Analysis

    Burnham's PMQs showed confidence, but his challenge is to deliver more than a tonal shiftpublished at 17:42 BST

    Alex Forsyth
    Political correspondent

    Andy Burnham stands at the dispatch box and looks towards the Speaker. His cabinet can be seen on the front benches around himImage source, House of Commons

    The debut of a new prime minister matters.

    Burnham took his place in the House of Commons chamber to raucous cheers from the packed Labour benches and struck a confident tone from the start, clearly keen to maintain the sense of optimism he's promised the country.

    His initial exchanges with Kemi Badenoch were vaguely jocular.

    The Conservative leader started with a joke about the PM's stamina after a marathon Commons' session on Tuesday when he took questions for more than three hours; there was laughter from MPs and a cautious smile from Burnham.

    But if there was an early twinkle in the eye of either party leader their exchanges soon slipped into more familiar territory, trading barbs over tax and borrowing with Badenoch making claims of profligate government spending.

    Burnham, despite his promises to end what he's called political "point scoring", was soon pointing the finger at the Tories for their economic record, referencing the budget of former Prime Minister Liz Truss while promising he'd deliver fiscal discipline.

    While the political barbs continued, it's clear that Burnham is a more comfortable communicator than his predecessor.

    His real challenge will be delivering more than a change in tone.

    We're bringing our live coverage to an end, you can read more on Burnham's first PMQs in our story.

  2. Burnham tackled business, economy and defence in lively PMQspublished at 17:33 BST

    Madeleine Lake
    Live reporter

    The Commons was filled with both cheers and jeers as Burnham's first PMQs kicked off.

    Conservative leader Kemi Badenoch wasted no time getting onto defence, saying the plan to reach 3% of GDP funding for defence is needed now - Burnham said he'd fully fund the defence investment plan.

    No topic brought more clashes than the economy. The PM blamed the rising borrowing costs in recent days on previous Conservative governments, while Badenoch accused him of saying yes to every request for spending without giving details on funding.

    The question of how things will be paid for remains relatively unanswered. But on 28 October, Burnham's Budget will put the proof behind the purse strings - here's how the government can raise the money in three ways.

    As government borrowing reached an 18-year high, Badenoch said it will cause higher mortgage rates and increases in the cost of living, while Burnham said his party is taking the action needed to get debt down.

    The UK is not alone in facing higher borrowing costs, business reporter Michael Race explains as US bonds hit the highest level since October 2023.

    Burnham's first PMQs was a real spectacle, our chief political correspondent writes. He says there is a clear ideological clash between Badenoch and Burnham, which they've embraced.

    While it may have been a spectacle, political correspondent Nick Eardly says it also felt familiar, with the Conservatives and government trading blows on who has been worse in power.

  3. Party conferences, trips abroad, and more PMQs: Burnham's next three monthspublished at 17:19 BST

    Andy Burnham walks out of No 10 and puts his hand out to feel the rainImage source, EPA/ Shutterstock

    Andy Burnham's return after recess has seen his first address to Commons and his first PMQs already - but there's plenty more on the political agenda to keep him busy in the months ahead. Here's a look:

    September sees a flurry of major political party conferences.

    This week, Reform UK Party Conference (3-5 September) heads to Birmingham, followed by the Liberal Democrat Autumn Conference (19-22 September) in Brighton.

    Then its Burnham's own Labour Party Conference in Liverpool from 27 to 30 September.

    In October, the Green Party Autumn Conference (2-4 October) takes Brighton and the Conservatives also flock to Birmingham for their Party Conference (4-7 October).

    And on 28 October, all eyes are on Burnham's Budget - it will come a day after his 100th day in office.

    He told MPs today that he and Chancellor John Healey set the Budget date early "to reduce the period for prolonged speculation" - more on that here.

    November will see Burnham head to Turkey for COP31 - he confirmed his attendance to MPs yesterday.

    And today during PMQs, Burnham also mentioned that the EU-UK summit would be held in the coming months. This was scheduled to take place in July but was postponed after Keir Starmer resigned as PM.

  4. Gas prices have surged in recent weeks as bills set to rise next monthpublished at 17:08 BST

    Michael Race
    Business reporter, New York

    As well as oil, gas has surged in price in recent weeks, climbing as high as 184 pence per therm on Wednesday before falling back slightly, according to Trading Economics.

    Prices have risen over global supply concerns due to renewed strikes between the US and Iran, and the unstable situation around ships being able to pass through the key Strait of Hormuz waterway.

    Rising gas prices will be unwelcome news to UK households.

    Higher gas prices have pushed up the cost of living in recent months and led to the an increase in energy bills.

    From October, bills are set to rise for millions to the highest level for three years, with a household not on a fixed deal using a typical amount of gas and electricity paying £60 a year more.

  5. Another re-shuffle in Badenoch's cabinet after days of changespublished at 16:53 BST

    Tory Leader Kemi BadenochImage source, House of Commons

    Conservative Leader Kemi Badenoch has been busy re-shuffling her shadow cabinet and ministers, with more announced this afternoon.

    In the latest changes:

    Harriett Baldwin becomes shadow minister for the taxpayer, a new post, as well as shadow paymaster general.

    Rutland and Stamford MP Alicia Kearns takes on a shadow Foreign Office minister role on top of her Home Office brief.

    Broadland and Fakenham MP Jerome Mayhew takes over from Helen Grant as shadow solicitor general.

    It adds to a spate of recent ins and outs, with some notable changes including:

    Tom Tugendhat takes over from Priti Patel as shadow foreign secretary.

    Alex Burghart - who has helped Badenoch prepare for PMQs and big Commons moments - is the new Conservative deputy leader.

    Mel Stride was replaced by Andrew Griffith as shadow chancellor. He describes his time in post at a "great honour".

    Claire Coutinho, previously the shadow energy secretary, will replace Griffith as shadow business secretary and act as his deputy after her maternity leave.

    Katie Lam has been named as the new housing secretary, after James Cleverly quit the front bench.

  6. UK borrowing settles slightly but remains highpublished at 16:42 BST

    Michael Race
    Business and economics reporter

    The interest rates on UK government borrowing have settled slightly this afternoon, though remain at a high level.

    The rate (or yield as its termed) on borrowing over 10 years is around 5.23% while yields are 5.87% for 30-year bonds.

    Oil prices have edged above $95 a barrel, adding to fears of inflation among financial investors and therefore higher borrowing costs. This is being driven by the conflict in the Middle East disrupting energy supplies.

    Huge spending on AI development is also having an impact globally, as Big Tech firms are borrowing eye-watering amounts, increasing competition in the market and pushing rates higher.

    Government spending and taxation plans at home also play a role here though, and whether those lending the money think they are credible, and so the markets will be closely watching the upcoming UK Budget.

  7. PM brings forward deadline for police specialist rape and sexual offences teamspublished at 16:22 BST

    The prime minister has announced that all police forces in England and Wales must have specialist rape and sexual offence teams in place by December 2027.

    The deadline for forces to have the specialist teams has been brought forward 18 months as Andy Burnham says waiting until 2029 would be "too slow".

    "The scale of violence and abuse suffered by women and girls in this country is unacceptable," Burnham says. "We must be laser focused on stamping out these vile crimes.

    "So we’re taking action to accelerate the roll out of specialist rape and sexual offence teams, who will go after perpetrators, enforce strict new protection orders to protect survivors, and invest in programmes to intensively manage offenders to break the cycle of abuse."

  8. BBC Verify

    Is there still a 'Burnham bounce' in the polls?published at 15:52 BST

    By Daniel Wainwright

    After more than a year in which Reform UK led most national opinion polls, Labour moved ahead over the summer.

    By the end of August, our average of recent polls put Labour on about 26% and Reform UK on 24%.

    The change coincided with Keir Starmer announcing his resignation as Labour leader on 22 June and Andy Burnham becoming prime minister on 20 July.

    But what was dubbed a "Burnham bounce" has levelled off. Labour is polling higher than before the leadership change, but its average lead is only around two points.

    That is too narrow to say Labour is clearly ahead. Polls are estimates and different companies can produce different results. Our chart below shows individual results as dots while the lines are averages.

    More in Common’s latest poll put the Conservatives second, ahead of Reform, while others had them third.

    Recent averages put the Greens on about 11% and Liberal Democrats on 10%. The SNP and Plaid Cymru average about 3% and 1% respectively in Great Britain-wide polls.

    Line chart showing voting intention in Great Britain from 1 June to 31 August 2026. Labour rises from about 19% to 26%, overtaking Reform UK and becoming the most popular party after Andy Burnham becomes prime minister in late July. Reform UK falls from around 28% to 24%. Conservative support remains stable at about 20%. Greens decline from 13% to 11% and Liberal Democrats from 12% to 10%. SNP stays near 3% and Plaid Cymru near 1%. Vertical markers indicate Keir Starmer resigning as Labour leader in June and Burnham becoming prime minister in July. Dots show individual poll results and lines show polling averages.
  9. Reform up against 'complainants' society', Farage tells BBCpublished at 15:30 BST

    Reform UK leader Nigel Farage was not in the House of Commons for Andy Burnham's first PMQs this afternoon. Instead, he sat down for an interview with the BBC's political editor Chris Mason.

    He tells Mason the UK is a "complainants' society" as he faces ongoing questions about both his and his party's funding.

    Farage, speaking to the BBC ahead of his party's annual conference this week, insists he believes he had done "nothing wrong", but ultimately it would be a "matter of interpretation" for the investigation to resolve.

    It comes after a summer dominated by headlines about the party's finances and £5m he received from a party supporter before the last election.

    Parliament's standards commissioner is investigating whether he should have declared that sum upon becoming an MP in his published register of financial interests.

    Farage has said the £5m was a personal gift and did not therefore require registration under the rules.

  10. Analysis

    Burnham clearly clashes with Badenoch, but takes different approach to Starmer at PMQspublished at 15:20 BST

    Henry Zeffman
    Chief political correspondent

    Burnham's first PMQs was a real spectacle.

    Not just because it was the first with a new double act, but also because there is a clear ideological clash between them - one which both Badenoch and Burnham have identified and embraced.

    They both think very different things about what Britain should look like and what Britain's problems are.

    Of course that was true of Keir Starmer and Badenoch as well, but one of the reasons that Burnham is now prime minister is because Labour MPs wanted somebody more enthusiastic about narrating his thinking.

    Nowhere is that clash more pronounced than on the economy, which is one reason why Badenoch will have chosen that subject for their first PMQs.

    One small difference worth noting: Starmer would often take a question from Badenoch and use his answer as an opportunity to attack not the Conservatives but Reform UK.

    Burnham did not do that today.

    It was a big moment when Starmer openly decided that the next election would be between Labour and Reform, not the Conservatives.

    Does Burnham agree? That’s worth watching.

    As Burnham faced questions in the Commons, Reform's leader Nigel Farage spoke to the BBC's Chris Mason. We'll bring you the key lines from that interview in our next post.

  11. BBC Verify

    Will Burnham's VAT cut reduce energy bills?published at 15:03 BST

    By Anthony Reuben

    During Prime Minister’s Questions, Andy Burnham was asked about what cuts he had made since entering No 10 and replied that he had cut tax - highlighting his removal of VAT from domestic electricity bills.

    The announcement - one of his first as PM - will save an estimated £45 from a typical bill from 1 October.

    But for many households that will be outweighed by the £60 increase in a typical energy bill from October, following the increase in the energy regulator’s price cap.

    When announcing the VAT cut, the government said it would cost an estimated £850m and would be funded by abolishing the digital ID scheme.

    But the Office for Budget Responsibility, the official spending watchdog, made it clear in the last budget that the digital ID scheme was itself unfunded at that stage.

  12. Remind me, how and why does the government borrow money?published at 14:46 BST

    This morning, we've been discussing the rising cost of government borrowing, a subject that looms over Andy Burnham's first PMQs as prime minister which comes later today.

    But what does that mean? Governments borrow money either to fund investment in infrastructure such as new railways or roads - with the hope of boosting the economy - or to cover day to day spending.

    The UK government gets most of its income from taxes. But it generally spends more money overall than the amount it raises in tax. To fill this gap, it borrows money, which has to be paid back - with interest.

    How does it work? The government borrows money by selling financial products called bonds - a promise to pay money in the future - that are traded on the stock market.

    Most require the borrower - in this case, the government - to make regular interest payments. In the UK, these government bonds are known as 'gilts'.

    A yield explained: This term is the percentage figure which tells you the amount of money someone would get each year if they bought a bond and held it until it matures.

    Who buys gilts? Gilts are mainly bought by financial institutions in the UK and abroad, such as pension funds, investment funds, banks and insurance companies.

    Government bonds are usually considered to be a safe investment, with little risk the money will not be repaid.

    If there is uncertainty among buyers, investors may start demanding a higher rate of interest in return for buying them.

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  13. The UK is not alone in facing higher government borrowing costspublished at 14:27 BST

    Michael Race
    Business and economics reporter, New York

    The UK is not alone in facing higher government borrowing costs.

    Today, US bonds hit a fresh high of 4.79% on borrowing over 10 years, the highest level since October 2023.

    The main driver of borrowing spikes has been increased prices for oil.

    Investors on global financial markets fear inflation will erode purchasing power and so demand higher yields to buy up government debt.

    On Tuesday, a barrel of Brent crude, which is the global benchmark for oil prices, was $94.

    That's the highest level it has been in six weeks and higher oil prices affect the prices of everything.

    Goods transported around the world on vehicles, ships and planes, all require fuel.

    Typically as it becomes more expensive to transport goods or manufacture them, then costs are passed on down the supply chain, ultimately hitting the pocket of the consumer.

  14. BBC Verify

    How much will debt interest payments cost the government?published at 14:14 BST

    By Anthony Reuben

    The cost of servicing government debt dominated the exchanges between Burnham and Badenoch this afternoon, as long-term borrowing costs have climbed to their highest level since 1998.

    The yield on a 30-year gilt - a loan to the UK government - rose to 5.89% on Tuesday.

    The Institute for Fiscal Studies told BBC Verify it expects the rise in interest rates to add about £6bn to the budget deficit in 2029-30.

    Debt interest is expected to be the fourth biggest thing the government spends money on this year - significantly higher than defence spending.

    chart of UK government spending forecast for 2026-27, showing total spending of £1,416bn split across sectors. Social protection is the largest category at £400bn, followed by health (£294bn) and education (£145bn). Debt interest is forecast at £135bn, making it the fourth largest area of spending, ahead of defence (£90bn). Other categories are transport (£69bn), public order and safety (£62bn), other (£60bn), industry, agriculture and employment (£56bn), personal social services (£54bn), and housing and environment (£51bn). Source: Office for Budget Responsibility and HM Treasury.
  15. Downing Street says PM and chancellor 'in lockstep' over financial rulespublished at 13:59 BST

    Andy Burnham stands to the right of John Healey at an event. Burnham is wearing a dark shirt and jacket while Healey has a white shirt on with a red tieImage source, PA Media
    Image caption,

    John Healey and Andy Burnham together at an event in Sheffield on Friday

    Downing Street says Prime Minister Andy Burnham and Chancellor John Healey are “in lockstep” on meeting the government’s fiscal rules, which were a focus of today's PMQs as the government faces pressure over borrowing, debt and the upcoming Budget.

    The PM's official spokesman points out that borrowing fell last year to its lowest level in six years and borrowing fell in the UK in 2026 more than in any other G20 country apart from Saudi Arabia and Russia.

    He adds that the UK economy also grew at the fastest rate in the G7 in the first half of 2026.

    “Fiscal discipline is the bedrock of economic stability and national security," he says.

    “The chancellor and the prime minister are in lockstep that the government will meet the fiscal rules with a buffer against uncertainty and get borrowing down, and we are cutting the deficit faster than any other G7 economy between 2025 and 2030.”

  16. All eyes on Burnham's Budgetpublished at 13:50 BST

    Emer Moreau
    Business reporter

    Governments can raise money in three ways - increase taxes, cut spending or borrow money.

    All eyes will be on the Budget next month to see what Burnham and his chancellor decide to do to deliver government commitments about issues like the cost of living and defence spending.

    Burnham told MPs today that he and Healey set the Budget date early "to reduce the period for prolonged speculation".

    Last year's Budget was particularly late, which resulted in rumours and leaks about what might be in it.

    The amount of media stories about what might in the statement by Healey's predecessor Rachel Reeves led to criticism from Speaker Sir Lindsay Hoyle, who labelled it the "hokey-cokey Budget," telling MPs "one minute it's in, the next minute it's out".

    Asked in the Commons by Badenoch whether he was preparing to raise taxes, Burnham said he would not "write the budget here".

    As a reminder, a former key advisor of Burnham’s, Lord Jim O'Neill, said last night that the Budget would have to include either spending cuts or "some form of tax increases" in order to restore the government’s "headroom".

    Ruth Curtice, the chief executive of the Resolution Foundation, said today that higher borrowing costs will force the government to address "long-running issues" pushing up public spending.

  17. Analysis

    The pressure of PMQs didn't get to Burnham, but it didn't feel that differentpublished at 13:40 BST

    Nick Eardley
    Political correspondent

    Andy Burnham at dispatch box in House of Commons with his back to the camera. Opposite him and sat down on benches are Kemi Badenoch and other members of the conservative shadow cabinet.Image source, PA Media

    Andy Burnham has emerged from his first PMQs without any major problems.

    The friendly fire from the Labour chair of the defence select committee was an important moment because it shows even some in his own party don’t think "vibes" alone will be enough.

    The PM is going to continue to face pressure from the conservatives over spending commitments and how they’ll be funded.

    But Burnham seemed relaxed and happy to crack some jokes in the chamber.

    The pressure of PMQs didn’t really show.

    What about that pledge to do politics differently?

    Well to be honest, PMQs today felt quite familiar with the Conservatives and government trading blows on who has been worse in power.

    Maybe PMQs is an area where some point-scoring is inevitable. Let’s see.

  18. Protesters block road outside Parliament during PMQspublished at 13:36 BST

    A police officer stands in front of people in high-vis jackets sitting in the road opposite the Houses of ParliamentImage source, PA Media

    Activists from the Just Stop Oil protest group blocked a road outside of Parliament as Andy Burnham was inside the House of Commons during PMQs.

    Dozens of demonstrators wearing high-vis jackets sat in the road, holding signs and placards.

    Just Stop Oil has carried out many high-profile protests over the last few years, demanding action on climate change and an end to new fossil fuel projects.

    But in 2025 the group claimed they would be "hanging up the hi-viz" and ending their campaign of civil disobedience because their demand that there should be no new oil and gas licences was at the time government policy.

    During the demonstration, the group said online that they want Burnham to oppose future oil and gas projects.

  19. Conservative minister argues that No 10 North has already been 'watered down'published at 13:25 BST

    Shadow secretary for Northern Ireland Alex Burghart speaks at the dispatch box. He is wearing a blue suitImage source, House of Commons

    Shadow secretary for Northern Ireland Alex Burghart has been responding to Louise Haigh in the Commons.

    He says that when he was first briefed about Number 10 North - the government's new operation in Manchester - he was told the department was going to take control of growth.

    But that already seems to have been "watered down" and the real power remains within "Number 11 South", he says.

    He says for Number 10 North to be credible it must help reduce the size of the civil service and must be driven by the interests of local people.

    He asks Haigh how much the reorganisation will cost and where the money comes from.

    Burghart also asks if combined authority mayors will be able to cut taxes and give rebates or if they will only be able to put up taxes.

  20. Government sets out 'rewiring of Britain' devolution plans in Commonspublished at 13:17 BST

    Louise Haigh at the Commons dispatch box, wearing a floral dress.Image source, House of Commons

    Following PMQs, First Secretary of State Louise Haigh has been making a statement about government plans to decentralise power away from Westminster and reverse privatisation of key industries.

    "This government will be the circuit breaker that this country needs", she says, adding that they have plans to "rewire Britain so that our politics and our economy work for every person and every place".

    She pledges to place water, transport, energy and housing under greater public control.

    On devolution, Haigh says innovations such as No 10 North will fire an "engine of regional economic growth".

    Regions will receive new powers, she says, giving "a greater share of locally generated revenues" and more control over housing, public transport, and infrastructure.

    "For the first time local leaders will have the power and resources they need to invest in the things that matter most to their communities", Haigh says.