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Andy Burnham faces key tests after Labour conference, including budget and EU ties

Prime Minister Andy Burnham faces significant challenges from October, including a difficult economic landscape, decisions on oil and gas, and welfare spending, following the Labour party conference.

  • A budget is scheduled for October 28, with Chancellor John Healey facing limited financial flexibility amid rising government debt interest payments.
  • Decisions on new oil and gas drilling under existing North Sea licences are expected, potentially causing dismay among environmental groups.
  • The government plans to decide on reforms to the disability benefit system in the coming months, following reviews by Stephen Timms and Alan Milburn.

Prime Minister Andy Burnham is set to face a series of tests from October onwards, following the Labour party conference. These challenges include navigating a difficult economic landscape, making decisions on oil and gas drilling, and addressing welfare spending.

A key event on the horizon is the budget on October 28. Chancellor John Healey is expected to have limited room for manoeuvre due to rising government debt interest payments and a challenging global economic picture, exacerbated by the war in Iran pushing up energy prices and wider inflation. Targeted cost of living support for those most affected by energy bills may be the primary focus.

The government is also expected to make decisions on new oil and gas drilling under existing North Sea licences. Energy Secretary Miatta Fahnbulleh had previously appeared set to approve the Jackdaw and Rosebank fields, with decisions reportedly delayed to avoid controversy during the Labour conference or ahead of the Holborn byelection.

In the coming months, the government will also decide how to proceed with reforming the welfare system. This follows reviews by minister Stephen Timms, who concluded that the personal independence payment (Pip) was not fit for purpose, and adviser Alan Milburn, who reviewed getting young people into work.

Further challenges include potential progress on closer ties with Europe, with movement on trade barrier talks expected this autumn, possibly in the first two weeks of November. The Holborn and St Pancras byelection on October 8 will also test Labour's standing against Green party leader Zack Polanski.

Why this matters: The upcoming decisions and events will shape the government's economic policy, environmental commitments, and social welfare reforms, potentially impacting various sectors and citizens.

What this means for you: Decisions on the budget and energy price caps could affect household finances and energy bills. Changes to welfare spending and disability benefits may impact those receiving support.

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