Former health secretary Wes Streeting levelled a series of thinly-veiled attacks against Manchester mayor Andy Burnham, ahead of a crucial by-election that will likely set a Labour leadership contest in motion.
In a speech in Tower Bridge in London, Streeting appeared to criticise Burnham’s political campaign in Makerfield in the weeks leading up to polling day this Thursday.
The former health secretary took shots at the popular Labour figure by focusing on the state of public finances, bond markets and the UK’s high-growth sectors.
In his call for “progressive capitalism”, Streeting insisted at least 80 MPs supported his bid to become Prime Minister despite questions over why he did not trigger a leadership contest when he resigned from Cabinet last month.
The MP for Ilford North made some pledges around boosting growth, mainly around infrastructure and energy. He reiterated his belief that the government would give the green light to oil and gas exploration projects at Rosebank and Jackdaw for Equinor and Shell in order to boost tax receipts.
Streeting also said he would fast track planning decisions for data centres, nuclear power plants and other critical infrastructure by introducing new emergency laws, adding that parliament had previously been able to make quick decisions as in taking control of British Steel.
The former health secretary added he would boost the recruitment of thousands of scientists and engineers to boost the UK’s growth.
But he also targeted Burnham and sent Labour members involved in the voting process words of warning over a series of economic promises.
Burnham has centred his campaign around public control as he has teased the nationalisation of Thames Water and energy grid operators. He has rowed back on a suggestion he would consider a £10bn payout to some female pensioners yet he has said he would cut taxes for pubs and look to revise a £25bn tax hike on employers.
In his speech on Tuesday, Streeting said: “There is a risk that a Labour leadership contest becomes a Dutch auction of the most expensive and popular pledges to appeal to the party faithful at the expense of the British people – not on my watch.
“You won’t find me making pledges to win your vote in a leadership election only to let you down after the ballots are counted.”
Streeting brings up bond markets
He also raised fiscal policy and bond trading, an awkward topic for Burnham after he said Labour had been “in hock” to markets. Government borrowing costs have surged to over £110bn a year.
Streeting said “bond markets are not Bond villains and fiscal rules matter”, adding that they were the “precondition for an activist state”.
He also warned that there was “very little room for error” in financial decisions made for the government given the size of the UK’s debt load, which is at around 94 per cent as a share of GDP.
The former health secretary claimed that growth should not be “desirable in theory and dispensable in practice” as he made the case for driving competition. He also distanced himself from Burnham’s criticism that the UK had suffered from “40 years of neoliberalism”, arguing that the UK had benefitted from the finance, technology and education sectors.