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Andy Burnham prepares crucial budget to support households and small businesses

Prime Minister Andy Burnham's upcoming budget will be a crucial test for his government, focusing on support for households, small businesses, and increased fiscal powers for mayors. The budget's sucโ€ฆ

Chris Mason: Burnham faces crunch decisions in his next 100 days
BBC Politics โ€” 26 October 2026
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Prime Minister Andyโ€ฏBurnham will face a string of decisive votes in his next 100โ€ฏdays, starting with a modest Budget on Wednesday that will test his new governmentโ€™s resolve and shape its economic direction. The budget arrives exactly three months after Burnham entered Downing Street from Buckingham Palace and began assembling his cabinet, a milestone that has already lifted Labour morale and nudged party poll numbers upward.

The timing of this yearโ€™s budget makes it appear quieter than previous ones. It is being presented a month earlier than last yearโ€™s, leaving less room for preโ€‘budget briefings, leaks and speculation. The scale of proposed tax rises is also smaller, reducing the potential for heated debate. New chancellor Johnโ€ฏHealey and his team have deliberately kept their messaging tight, preferring to let the numbers speak for themselves rather than stir up headlines.

Healeyโ€™s budget will focus on three main themes: support for households still feeling the pinch of high living costs, assistance for smallโ€‘business owners and entrepreneurs, and extra fiscal powers for English mayors as the economy steadies. While the package is modest, it will be the first test of Burnhamโ€™s claim that his government can deliver โ€œsteadyโ€‘asโ€‘sheโ€‘goesโ€ growth after the turbulence of the past few years. At the same time, Burnham has signalled a willingness to reopen the Brexit conversation, urging an โ€œhonest discussionโ€ about freedom of movement. He has hinted that any change would require a public referendum, but his team stopped short of committing to a specific outcome, keeping the issue on the political agenda without provoking immediate backlash.

The budgetโ€™s outcome will set the tone for the rest of Burnhamโ€™s first hundred days. A successful rollout could cement Labourโ€™s rising poll numbers and strengthen Burnhamโ€™s hand in future Brexit talks. A stumble, however, could revive criticism of the partyโ€™s economic credibility and stall the broader conversation on the UKโ€‘EU relationship. All eyes will be on Healeyโ€™s numbers and Burnhamโ€™s next moves as the new administration navigates its early challenges.

Read Full Story at BBC Politics โ†’
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