Prime Minister Andy Burnham's first six weeks in Downing Street face fresh scrutiny as Parliament reconvenes, with critics warning that his early premiership has produced publicity but few answers on Britain's biggest economic problems.
Since taking office, Burnham has undertaken an extended round of public appearances, including donning an apron at a soup kitchen in London, visiting a bus garage in the north of England, and playing guitar for Ukrainian soldiers. Policy announcements in that period have been limited to a cap on bus fares and a small cut to energy bills.
Burnham became prime minister with what critics describe as minimal scrutiny and no electoral mandate. He previously served as mayor of Greater Manchester and as a Labour MP, including a spell as health secretary, before rising to the top of government. Parliament's return now puts him under pressure to set out policy on the national debt, welfare spending, illegal migration, defence and the criminal justice system.
Tax rises said to be under consideration
Wealth taxes, pension raids, death taxes, property taxes, windfall taxes, and increases to capital gains and inheritance tax are all said to be under consideration ahead of the government's forthcoming Budget.
Critics argue that Labour MPs, particularly those representing northern constituencies, are targeting the southern middle classes, despite London and the South East contributing 45 per cent of all income tax revenues in the country, along with a larger share of corporation tax. Personal and business taxes are already at their highest level since the 1940s.
Bond markets and the national debt
UK government bond yields, which determine the cost of state borrowing, have climbed to their highest level in nearly 30 years. Britain's national debt is approaching £3 trillion. In the last financial year, public sector net borrowing reached £12 billion, while total debt repayments exceeded £100 billion.
International lenders and analysts fear that this level of fiscal risk is unsustainable, and have demanded higher interest rates to offset the danger of default. Critics say a further tax increase in the Budget, without corresponding spending restraint, would confirm those fears.
Burnham has previously said Britain was too much "in hock" to the financial markets. Critics have drawn comparisons with 1976, when a Labour government was forced to seek a bailout from the International Monetary Fund and the country entered a period of austerity.
Badenoch reshuffles top team
Kemi Badenoch, the leader of the opposition, is being urged by critics of the government to press Burnham on the state of the public finances as Parliament resumes. Badenoch carried out a reshuffle of her top team, which was announced the day before Parliament's return.
The Budget is expected to be the next major test of the government's economic direction, with the scale of any tax changes to be set out in the coming weeks.
