Bridget Phillipson, Labour's chair and minister for women and equalities, has warned that Donald Trump's military campaign against Iran will make the forthcoming budget significantly more challenging to deliver. Speaking on Sunday, she acknowledged that Prime Minister Andy Burnham's earlier criticism of the US president would not impede their working relationship as Burnham prepares to meet Trump at the UN general assembly in New York this week.
Phillipson's comments come as the government grapples with the economic fallout from Middle Eastern tensions. Rising energy prices triggered by the Iran conflict have been feeding inflation, making Chancellor John Healey's task of preparing the October budget considerably more difficult. According to reporting on 16 September, Burnham had already indicated that "difficult decisions" would be needed in next month's budget after the Iran war pushed UK inflation above 3 per cent.
When asked whether Burnham's past remarks about Trump—made when he was Greater Manchester mayor, when he said the president would not be welcome in the city and that UK politicians who "indulged him" should be ashamed—would damage relations, Phillipson dismissed such concerns. She told :
Look, I think what you've just described there is politics. The president knows that. This is far from unique. People will express views at different points on different topics. And that's no bar to having a strong relationship.
Burnham has previously defended his own comments in similar terms, noting that as politicians, both he and Trump have said things in the moment, and that he meets people where they are to find common ground.
How will the Iran conflict affect the UK economy?
Phillipson acknowledged that while the UK economy remained in a "strong position", the Middle East tensions posed real challenges for households and businesses. She said:
But that's not to take away from the very real challenges that you identify, particularly where it's come to the conflict we've seen in the Middle East and the impact that that's been having on businesses and on families close to home.
She emphasised that the government had made the correct decision not to involve itself in the Iran conflict, contrasting this with what she suggested would have been the approach of the Conservative opposition. She stated:
We took the decision not to involve ourselves in that conflict. That was the right call. The US will take their own foreign policy decisions, but I believe, and still believe now, it was the right decision for us as a country not to get involved in that conflict. Of course, something that, had Kemi Badenoch and Nigel Farage been running the country, we would have jumped headlong into a conflict with it without end.
Phillipson stressed that managing the cost-of-living pressures created by global energy price movements remained a priority as Healey finalised the budget. She added:
And yet, and we do see the consequences here at home and as we go into the budget, making sure that we are doing everything we can to give people that breathing space to tackle those challenges around the cost of living has been at the forefront of everything that Burnham has done since becoming prime minister. I know it's at the forefront of the chancellor's mind as he's planning for that budget later on next month.
The budget announcement is scheduled for 28 October 2026. Burnham faces seven major fiscal constraints ahead of the autumn budget, including manifesto tax pledges, defence spending targets, cost-of-living support and welfare reform pressures.
What did Phillipson say about Jim Ratcliffe's criticism?
In a later BBC interview, Phillipson was dismissive of remarks made by Sir Jim Ratcliffe, the Manchester United co-owner and founder of Ineos, who claimed this week that he had lost confidence in the UK due to levels of immigration and taxation. According to coverage of Ratcliffe's remarks, he blamed high taxes and immigration for his lack of confidence in the UK, adding that Britain was "on the slide."
Phillipson rejected both the substance and the credibility of Ratcliffe's position. She said:
You'll forgive me if I do take with a pinch of salt what someone who is a tax exile has to say about our country.Ratcliffe is resident for tax purposes in Monaco. She later used the BBC platform to attack Ratcliffe more directly, saying he had lost the "moral high ground" by criticising the UK while living as a tax exile, and stressed her optimism about the country's prospects.
How will Burnham approach his meeting with Trump?
Phillipson argued that the UK-US relationship transcended any individual political leader and their personal views. She said:
We don't have the same political outlook, but the relationship between the UK and the US goes beyond any one president, any one prime minister. It's something that has stood the test of time over many centuries, despite political differences. They come and go. What matters most is the British national interest. And that's what Andy Burnham will deliver for our country.
Burnham's meeting with Trump at the UN general assembly in New York this week is expected to be a key moment for UK-US relations. The prime minister has previously said he would call out Trump if needed to protect Britain's national interest, suggesting he is prepared to maintain a pragmatic approach to the relationship despite their political differences.
The wider context for this diplomatic engagement reflects the complexity of Burnham's position since entering No 10. As Greater Manchester mayor, he had been openly critical of Trump, but since becoming prime minister, he has sought to reset the relationship. The pair have already spoken twice by phone since Burnham entered No 10, laying groundwork for their in-person meeting.
Key Facts
- Bridget Phillipson warned that Trump's Iran military campaign will complicate the October 2026 budget by disrupting global oil supplies and pushing inflation higher
- Prime Minister Burnham is scheduled to meet Trump at the UN general assembly in New York this week, with the relationship expected to move beyond Burnham's earlier criticism of the US president
- Phillipson dismissed criticism from billionaire Jim Ratcliffe about the UK's tax and immigration policies, noting he is a tax exile resident in Monaco
- The government has decided not to involve itself in the Iran conflict, a decision Phillipson defended as correct for British national interest
- Chancellor John Healey faces mounting fiscal pressures ahead of the budget announcement on 28 October, including manifesto commitments, defence spending and cost-of-living support
