Burnham vows to fund defence plan, rules out tax rises for working people

Labour’s new defence investment plan leaves the next prime minister with a £4.7bn gap after a £15bn boost for the armed forces. Andy Burnham said he would take “extremely seriously” the task of funding it in his first media interview since launching his bid to become prime minister, ruling out raising National Insurance, income tax or VAT on “working people” and saying there would be “no compromise on the security of the nation”.

Burnham said he had not seen all the details before the plan was published on Tuesday, but insisted he would not be “indisciplined” on the public finances. He said there was “some room within that manifesto for movement on tax”, while pointing to higher business rates on warehouses and major developments as one way to help reduce pressure on pubs and high street businesses. He also said he would not make “crude cuts” to benefits, but would look to shrink the welfare bill through changes to education and training policy, including better support for technical qualifications, work placements for 16-year-olds and mental health support for people in work.

John Healey resigned as defence secretary over what he saw as an unfunded settlement, and his successor, Dan Jarvis, later secured an extra £1bn for the package.

Burnham earlier said the UK needed to get beyond being “in hock to the bond markets”, but said Greater Manchester’s finances had been “rock solid” when he was mayor and pointed to his Treasury experience. Conservative leader Kemi Badenoch said Burnham must either find the money for defence or call a general election.