Inside Andy Burnham’s Budget battle as Labour MPs warn he is starting to ‘sound like Keir’

JOHN Healey used to worry about bombs and bullets – now he frets about bonds and budgets. Defending the nation may be stressful stuff, but navigating the landmines of the Treasury is no breeze. Chancellor John Healey Credit: Getty Former Chancellor Rachel Reeves Credit: Getty For a Chancellor who gave both barrels to his predecessor, he is already finding himself confronted with the same problems as Rachel Reeves. A promise not to raise income tax, national insurance or VAT. A pledge not to increase day-to-day borrowing. A Labour party that won’t stomach spending cuts. An economy that is a drag anchor on growth and vulnerable to headwinds from overseas. Sign up for the Politics newsletter Thank you! Is it any wonder that one of Healey’s top aides slipped out to a Westminster pub for a few pints of Guinness with one of Reeves’ former advisers this week for some friendly advice. But where Reeves was carted off to the knackers’ yard as the most unpopular Chancellor in recent times, Healey is desperate to avoid the same fate. Many Labour MPs searching for a departure from the gloomy Starmer years have so far been left wanting. “The fundamentals are pretty hard,” one says. “People are going to be poorer and frankly, the policy programme looks a lot like Rachel’s.”After observing Andy Burnham up close for almost 60 days, another MP remarked the new PM was even starting to “sound like Keir”. Top economist Andy Haldane touched a raw nerve in Downing Street this week when he lambasted the new administration as a “traditional tax and spend socialist government with better TikToks”. The faces may change – but the issues remain the same, something one sighful Labour MP describes as “inevitable”. Most read in The Sun But if Burnham and Healey cannot change the economic weather, they can at least act where Starmer failed in winning the confidence of their fickle backbenchers. Prime Minister Andy Burnham posing for a selfie with Labour MPs after winning the Makerfield by-election Credit: X/FeryalClark The new regime has certainly changed the mood in Westminster, with Labour MPs who once felt ignored now saying they are ready to make difficult choices if Burnham takes them with him Credit: Shutterstock Editorial Labour MPs describe a concerted effort by No10 in recent weeks to bring them inside the tent before asking them to swallow difficult decisions. A series of briefings with ministers for MPs are happening ahead of the Budget, including a Treasury session this week, where the emphasis was less on collecting a shopping list of demands and more on explaining the economic situation confronting the Government. One MP who attended says: “There’s a lot more of ‘this is the economic situation. This is what’s going on’. “They’re raising the overall level of knowledge, which I think is helpful.” They describe ministers being encouraged to speak to backbenchers individually and in small groups – worlds away from Starmer’s No10 who made enemies of the PLP. “There’s definitely a different atmosphere between the PLP and No10,” one said. “The ones I’ve been to have been much more: ‘Tell me what you think. Tell me what you’re worried about.’” Another Labour MP describes how, after asking Burnham a question in the Commons and being unhappy with the PM’s response, members of his team immediately approached afterwards to make sure he was alright. He said: “That would never have happened after Keir. And it makes a difference.” But the significance of this softer treatment will become clearer when Burnham has to start disappointing his own side. Several Labour MPs who rebelled against the previous government insist the PLP is more prepared to accept spending restraint than the battles of the Starmer years might suggest. One tells The Sun: “I think generally the media has underestimated the PLP’s ability to take difficult decisions. When faced with the reality, the PLP will make those decisions. “At the same time, what is needed from Burnham is that there will have to be a serious commitment to get a grip on spending. “The national security versus social security comment was a good soundbite, but without national security there is no social security.” Another MP says there was already an understanding among colleagues that “there’s no magic money” available to throw billions at the problems facing the Government. But there are growing questions over how many of the painful choices Healey will actually have to make next month – and how many will be kicked into the next year. One senior Labour MP says the delay is already fuelling chatter among colleagues about an early election. He said: “This Budget isn’t going to be dealing with any of the big questions that Andy’s talking about. That’s why lots of colleagues are worried about an early election.Why are you kicking the can down the road? Is it because you want an early election, or just because you don’t want to make the decisions yet?” But one decision the Chancellor will struggle to dodge is defence given his move from the Ministry of Defence to the Treasury has put him on the other side of an argument he fought fiercely under Starmer. As Defence Secretary, Healey demanded more money for the Armed Forces and ultimately quit after the then-PM refused to commit to spending three per cent of GDP on defence by 2030. Now, sitting in No11, it is Healey who has to find the cash and allies of the former PM are watching closely. One Starmer ally says Keir is “furious”, blasting: “Healey literally accused Keir of putting the country in danger, and is wriggling now he’s actually in the chair. It’s outrageous.” But Al Carns, who served under Healey at the MoD, says he still had faith in his former boss to make the sums work. The former Armed Forces Minister tells us: “John Healey resigned on defence spending, so let’s see what he says at the Budget. “By knowing what’s in the Budget, you’ll be able to work out whether or not they can afford to make that commitment. I have faith in John Healey to crunch the numbers.” But some at the top of government who worked with Healey said they were “surprised” when he became Chancellor, describing him as “not a numbers guy”. Nevertheless is now one of the most influential people in government, attending the daily morning meetings with Burnham – fuelled by bacon butties smothered in his beloved HP sauce. The cost of living presents the central headache, with MPs wanting the Government to deliver visible help while acknowledging that expensive interventions can produce savings too small for voters to notice. One Labour MP describes the promise to bring down energy bills as a “false errand”, warning that ministers could spend billions cushioning future rises while families still see a bigger number at the bottom of their bill. Inside the Treasury, however, officials argue there is another important difference between Healey and Reeves which cannot be found on a spreadsheet. One Treasury official says the “vibes are notably different” under the new Chancellor and insisted his less gloomy tone should not be underestimated. “John isn’t doom and gloom,” they say. “That matters more than people think. When people have hope and confidence in the economy, it can make a massive difference.” Where other Chancellors would take their lunch at their desk, Healey sometimes sits among the staff in the Treasury canteen. Allies even say he has managed to charm the notoriously hard-to-please unions, sweetening them with chocolate digestives at a meeting this week. “They used to march out of No11 after meeting Rachel and instantly start slagging her off. But this is much better.” The question facing Healey and Burnham is whether a different style of governing can help them navigate economic choices which are proving incredibly familiar. The new regime has certainly changed the mood in Westminster, with Labour MPs who once felt ignored now saying they are ready to make difficult choices if Burnham takes them with him. One MP believes the PM’s first weeks have bought him “a little bit of time and trust”. The problem with both is that eventually you have to spend them. Comment now