Andy Burnham must resist SNP's efforts to pressure him into 'benefits for all'

Andy Burnham found he was quite popular among his Labour party colleagues on his return to the Houses of Parliament, following victory in the Makerfield by-election (Picture: Dan Kitwood) | Getty Images

According to the SNP, the next UK Prime Minister must “immediately slash the cost of energy bills”. For a party that is ideologically wedded to universal benefits, it must be baffling that Labour has not done so already.

After all, Keir Starmer’s election manifesto promised to reduce energy bills by £300 by 2030, but consumers are set to face a 13 per cent rise from the start of next month. Things are heading in the wrong direction.

However, unfortunately, when dealing with the real world – rather than nationalist fantasies about an independent Scotland in which people would supposedly get a third off their bills – things are never that simple.

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Government finances already under pressure

During the energy crisis prompted by Vladimir Putin’s full-scale invasion of Ukraine, the UK Government spent £75 billion – almost 3 per cent of GDP – over two years helping families and businesses. Prices are lower now, but cutting bills for millions of people would still cost a vast amount. If help is to be provided, it should be targeted at those who need it most.

Regrettably, Prime Minister-in-waiting Andy Burnham will not just be under pressure from the SNP on this issue, with Labour left-wingers largely singing from the same economic hymn sheet as the SNP.

Excessive public spending would, of course, put yet further strain on already stretched government finances. Burnham has pledged to stick by Labour’s fiscal rules, but if, as expected, he appoints a new Chancellor, the replacement will need to move quickly to reassure the bond markets that they will continue Rachel Reeves’ firm stance. If not, the eye-watering cost of government borrowing will rise even higher.

Sound fiscal and economic policies necessarily underpin everything any government does. The state of the North Sea energy sector is particularly vital, given it is a source of vast tax revenues, provides energy security in a troubled world, and also has the capacity to help cut people’s bills.

The left-wing obsession with benefits for all might be a vote-winning idea for some. However, at a time when there is an urgent need to increase defence spending, it may turn out to be as dangerous as it is economically foolish.