Andy Burnham says he would challenge Trump over UK interests

Andy Burnham Trump relations are getting an early test as the U.K.’s new prime minister tries to reset ties with Washington while signaling he will push back when British interests are at stake. For investors, the tone matters because U.S.-U.K. diplomacy now cuts across energy policy, defense budgets and government borrowing.

In a BBC interview aired Sunday, Burnham said he spoke by phone with U.S. President Donald Trump on Monday, the day he formally took office. Burnham described the call as a “good exchange” and said he found Trump “warm.”

Burnham said the two governments would keep building the relationship. Asked whether he trusted Trump, he told the BBC that the world was changing and that leaders have to respond as events develop.

What did Andy Burnham say about Trump?

Asked by BBC journalist Laura Kuenssberg whether he would call out Trump if he believed it was necessary, Burnham answered, “of course.” He said a prime minister’s job requires defending the national interest first.

Burnham also said he could not promise that he would avoid taking a different view from Trump. He said there may be moments when he would need to express a position that he believes is right for Britain.

The exchange sets a careful opening note for a relationship that has already been politically charged. Trump had criticized Britain and other European and NATO allies for not carrying enough of the burden in the U.S.-led war on Iran, according to CNBC.

Trump has also attacked the energy policy of Burnham’s predecessor, Keir Starmer. In an April interview with The Telegraph, Trump said Starmer wanted “costly windmills” that were pushing energy prices higher.

Burnham has taken a different approach on one part of the energy debate. Trump welcomed Burnham’s plan to speed up oil and gas exploration in already-licensed North Sea fields. In a Truth Social post last week, Trump called North Sea oil “invaluable” and said it could help turn the U.K. from what he called a “Poverty Stricken Disaster” into one of the world’s richest countries.

Why did Burnham replace Keir Starmer?

Starmer said last month that he would resign as prime minister. His government had faced policy reversals, controversies over staffing appointments and steep losses in local elections, which led to calls for him to step down from inside his own party, according to CNBC.

Burnham took office last week and has already had to address two issues markets track closely: energy supply and defense spending. Energy policy can affect inflation, company costs and public finances. Defense spending affects the budget, especially when debt and borrowing costs are high.

What is the UK defense spending debate?

Defense spending is the amount a government commits to its armed forces, weapons systems, military technology and related industrial capacity. It is often measured as a share of gross domestic product, or GDP, which is the value of goods and services an economy produces.

Burnham declined in the BBC interview to give a date for raising defense spending to 3% of GDP. He said his first task with new finance minister John Healey is making sure the defense investment plan is fully funded before the budget later this year.

Healey, now Chancellor of the Exchequer, is expected to treat defense spending as a priority. He had recently resigned as Starmer’s defense minister, saying the previous government was unwilling to commit the resources needed to defend the country.

Starmer announced in June an additional £15 billion, or $19.9 billion, for defense over four years under the U.K.’s Defence Investment Plan. That plan would raise annual spending to £79.1 billion by 2029, equal to 2.7% of GDP.

The plan is designed to strengthen the military, the nuclear deterrent and industrial capacity, while increasing investment in cybersecurity, drones and artificial intelligence. CNBC reported that analysts warn high public debt and the highest borrowing costs among G7 peers could limit how far the new government can increase spending.

This story draws on original reporting from CNBC.