Prime Minister-in-waiting Andy Burnham will address the nation today at midday, as he is officially crowned leader of the Labour Party at the party's special conference. The Makerfield MP is expected to deliver a speech outlining his vision for a renewed Labour government, focusing on driving growth in every postcode, returning power to communities, and having the courage to fix neglected issues.
IMF Calls for Fiscal Restraint
However, the International Monetary Fund (IMF) has released a fresh report urging Burnham's incoming government to resist boosting public spending despite pressures including soaring household energy bills. The Washington-based fund, representing around 190 member countries, said the government should remain focused on expanding the economy and stabilising debts in an increasingly volatile world.
"This calls for a cautious approach to new fiscal pressures: the authorities should be very selective in accommodating new demands and reprioritise, while sticking to the deficit reduction plan," the IMF report stated. "Future spending reviews should focus on reallocating resources across departments, rather than increasing total spending."
Energy Shock Response Must Be Targeted
Specifically, the IMF pressed the government's response to the Iran war energy shock to remain "tightly targeted, temporary and budget-neutral." This means steering clear of universal support schemes like the 2022 energy crisis measure that limited annual household energy bills to £2,500.
"Broad-based measures, such as cuts in energy taxes, outright energy price caps, or generalised subsidies, should be avoided, as they are costly, difficult to unwind, and weaken price signals," the IMF cautioned. It also underscored increasing expenditure pressures due to an ageing population, defence commitments, and the shift away from fossil fuels.
Burnham's Agenda and Cabinet Changes
According to several sources, Burnham is expected to praise his predecessor, talk about improvements to the NHS, investment in public services, and the passing of the Hillsborough Law. He will be crowned Prime Minister on Monday, but not before delivering today's speech detailing what Britain can expect from his leadership.
Chancellor Rachel Reeves seems to have accepted she will not continue in Burnham's cabinet, although the likely next prime minister has not yet confirmed any appointments. Ed Miliband is widely seen as a potential successor for the crucial role.
In response to the IMF's report, Reeves stated: "We have the right economic plan to build a stronger, more secure Britain, with the IMF backing the choices I've made to put the country in a much stronger position than it was two years ago."
The IMF has previously commended Reeves' fiscal strategy for achieving a good equilibrium between reducing the UK's deficit and "growth-friendly spending" and investment into sectors such as health and education.
