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Andy Burnham and Kemi Badenoch clash over rising UK borrowing costs and tax plans

The prime minister defended his economic plans against comparisons to Liz Truss as 10-year gilt yields reached their highest level since 2008.

Updated Sep 2, 2026 · 13:19 UTC1 reports

The short version

Prime Minister Andy Burnham and Conservative leader Kemi Badenoch clashed during Prime Minister's Questions over market volatility and potential autumn tax increases.
UK 10-year bond yields climbed four basis points to their highest point since June 2008, narrowing fiscal headroom for Chancellor John Healey.
Badenoch accused Burnham of risking a market crisis by refusing to deny future tax hikes, while Burnham attributed market exposure to 14 years of Conservative governance.
The government will deliver an autumn budget in October, where upcoming tax and spending choices will be formally detailed.

UK 10-year government bond yields rose by four basis points to reach their highest level since June 2008.[The Guardian]
Conservative leader Kemi Badenoch compared the current market pressures to Liz Truss's mini-budget and pressed the prime minister on whether taxes would rise in October.[The Guardian]
Andy Burnham declined to rule out tax rises in the upcoming budget, stating that setting fiscal measures remained the responsibility of Chancellor John Healey.[The Guardian]
Burnham attributed the UK's exposure to market turmoil to the previous Conservative administration's record on growth and debt.[The Guardian]
Economist Jim O'Neill cautioned that Burnham's recent statement reaffirming public utility control was poorly timed given background market conditions.[The Guardian]

The primary cause of the bond yield surge is disputed, with some economists citing Burnham's utility ownership policies while market strategists point to rising oil prices.[The Guardian]
Whether the autumn budget will include tax increases remains unconfirmed.[The Guardian]