Starmer: Andy Burnham's plans would cause a Liz Truss-style money market meltdown

SIR Keir Starmer last night warned Andy Burnham's spending plans would risk blowing up the financial markets like Liz Truss as Labour exploded into all-out civil war.

- By Martyn Brown Political Editor

His damning broadside came after the Greater Manchester Mayor claimed MPs are urging him to topple the Prime Minister.

Former Health Secretary Mr Burnham has outlined plans for a £40billion borrowing spree to build council homes.

He also wants to drop income tax for low earners and introduce a 50p rate for high earners, claiming his policies would "turn the country around".

In addition, he questioned why the Government is "in hock" to the bond markets and suggested Chancellor Rachel Reeves should splurge on borrowing.

Then Tory PM Ms Truss was forced out of office in 2022 after she tried to embark on £45billion of unfunded tax cuts.

Sir Keir took aim at Mr Burnham's economic ideas, suggesting they could trigger a bond market rout on the scale that followed Ms Truss's mini-Budget.

He told ITV: "I'm not going to get drawn into Disaster...Liz Truss commenting on the mayor's personal ambitions. But I do want to be really clear about our fiscal rules because economic stability is the foundational stone of this government. It was three years ago this week that Liz Truss showed what happens if you abandon fiscal rules.

Now, in her case, she did that for tax cuts. But the same would happen if it was spending.