Starmer Ally Criticises Burnham’s First Major Policy as Labour Divisions Emerge

Fresh tensions have surfaced within the Labour Party after a close ally of former Prime Minister Keir Starmer criticised Andy Burnham’s first major policy announcement, exposing early divisions just days into Burnham’s premiership. The disagreement highlights the challenge facing the new prime minister as he seeks to unite the party while pursuing a different governing agenda.

The criticism centred on Burnham’s decision to scrap the 5% VAT on household energy bills, a move expected to save families money as the cost-of-living crisis continues. Burnham has argued that the policy will provide immediate financial relief ahead of winter and will be funded by cancelling the previous government’s proposed digital identity programme. He has described the measure as the first step in a broader plan to ease pressure on households and restore public confidence in government.

However, figures aligned with Starmer questioned whether the tax cut should have been the government’s first priority, warning that Labour must remain fiscally disciplined and avoid policies that could unsettle financial markets or strain public finances. Some also expressed concern that Burnham’s administration appeared to be distancing itself too quickly from Starmer’s economic approach, despite inheriting many of the same fiscal challenges.

The disagreement reflects broader differences between the two Labour leaders. While Starmer focused heavily on economic caution and reassuring investors, Burnham has promised a more interventionist approach, including greater investment in housing, public services, regional development and measures to reduce living costs. Although both leaders share Labour’s broader goals, Burnham has signalled that he wants to deliver visible change more quickly, even if it means departing from some of his predecessor’s priorities.

Political analysts say such internal debates are not unusual after a change in leadership, but Burnham’s ability to maintain party unity while delivering on his promises will be closely watched. With major reforms expected in the coming months, the prime minister faces the difficult task of proving that ambitious policies can improve living standards without undermining the economic stability he has pledged to protect.