Shabana Mahmood and Andy Burnham have clashed over economic policy, according to a leaked memo that reveals tensions between the two prominent Labour figures. The memo, obtained by the Guardian, shows that Mahmood, the shadow chancellor, criticised Burnham's proposals for regional investment as 'unfunded and unrealistic'.
Leaked memo exposes rift
The memo, dated 14 July, was sent by Mahmood to Burnham's office after a meeting between the two. In it, Mahmood argues that Burnham's plans for a £10bn investment in the North of England would require cuts elsewhere. 'We cannot promise what we cannot deliver,' she wrote. 'Our fiscal credibility is on the line.'
Burnham, the mayor of Greater Manchester, responded by accusing Mahmood of 'centralising control' and ignoring the needs of the regions. 'The Treasury's obsession with balancing the books has held back the North for decades,' he said in a statement. 'We need bold action, not more austerity.'
Impact on Labour's election strategy
The dispute comes as Labour prepares for the next general election, with both figures vying for influence over the party's economic platform. Mahmood has advocated for fiscal discipline, while Burnham has called for greater devolution and investment. The rift could complicate Labour's messaging on the economy, a key battleground in the election.
A Labour spokesperson declined to comment on the memo, but said the party was 'united in its commitment to economic growth and fairness'. However, the leak suggests underlying tensions that could surface in the campaign.
