Burnham admits Britain faces energy crisis but dodges on fuel duty relief for struggling drivers and hints at more Budget tax hikes... as he comes crashing down to Earth after big 'vision' speech

• See more Daily Mail on Google - save us as a Preferred Source

By JAMES TAPSFIELD, UK POLITICAL EDITOR

Published: 08:08 BST, 30 September 2026 | Updated: 08:11 BST, 30 September 2026

Andy Burnham admitted Britain is facing an energy 'crisis' today - but dodged on relief for families and even hinted at more tax hikes at the Budget.

The PM was given a brutal reality check after his Labour conference 'vision' speech as energy bills were forecast to spike another 16 per cent in January.

Motorists are already suffering from record pump prices as the Middle East chaos wreaks havoc, while the Bank of England is poised to increase interest rates next month.

In interviews this morning, Mr Burnham said a warning from the boss of EDF that the UK was headed for a crisis this winter is not an 'overstatement' and the situation is 'challenging'.

However, he refused to commit to scrapping a scheduled increase in fuel duty, or guarantee cost of living help at the Budget.

Instead he talked up the 'state of the public finances', stressing there was not 'huge room for manoeuvre'. 

Andy Burnham was given a brutal reality check after his Labour conference 'vision' speech, as energy bills were forecast to spike another 16 per cent in January

Inflation, slowing growth and surging debt costs have been eroding Chancellor John Healey's 'headroom' against the Government's fiscal rules. 

Economists believe Chancellor John Healey will need spending cuts or tax rises on October 28, but the former would be fiercely resisted by Labour MPs. 

Mr Burnham pointed to his decision to take 5 per cent VAT off electricity bills until March - even though the typical £45 saving has already been more than wiped out.

'I'm doing what I can, removing say VAT off bills. But it is very difficult indeed, and it's why the Middle East situation needs to command a lot of our attention,' he said.

He told BBC Breakfast: 'I'm considering everything that might help people in very difficult times and I will be honest and say every possible measure is being looked at.

'The question I've got is, 'how many can I afford?'

'What can we do given the state of the public finances?'

'And people wouldn't thank me for making unfunded payments that then cause pressure on mortgages – and we've seen that in the past and we're not going back there.'

Mr Burnham later added: 'We will work hard to take that pressure off people's shoulders.

'But I would be the first to say it's hard – and the long-term answer is to put water under stronger public control – energy, housing reform, those are the long-term answers.'

Motorists are already suffering from record pump prices as the Middle East chaos wreaks havoc (file picture)