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Kemi Badenoch will warn that Andy Burnham has no plan for the country after his first two policies began to unravel.
In her first intervention since Mr Burnham became prime minister, Mrs Badenoch will accuse him of ‘still thinking like the mayor of Manchester’.
Mr Burnham announced modest proposals to shave £45 off energy bills and revive the £2 cap on bus fares in his first days in office this week.
Ministers have been struggling to explain how the plans will be paid for, despite Mr Burnham insisting that all his proposals would be ‘fully funded’.
Former Cabinet minister Darren Jones rubbished claims that the £850 million plan to cut VAT on electricity bills could be paid for by scrapping the digital ID cards scheme, pointing out that funding for the system have never been agreed.
And transport secretary Heidi Alexander admitted that the funding for the £454 million plan to cap bus fares ‘hasn’t been worked through’.
In a speech in London on Thursday, Mrs Badenoch will urge the new PM to rule out tax rises to ‘pay for his spending spree’.
The Conservative leader will welcome the new PM’s interest in tackling the cost of living, but warn that his piecemeal approach does not come close to meeting the challenges faced by the country, saying: ‘Is that it?’
She will urge Mr Burnham to focus on boosting the economy by curbing taxes and cutting welfare spending.
‘He needs to lift his sights, because the world will not wait for Andy to get his act together,’ she will say, adding: ‘Going by what he’s announced so far, Andy Burnham’s ambitions for Britain are too small,’ she will say, adding: ‘Real problems need bigger, long-term solutions.
'Bus fares are expensive because fuel is expensive. Energy is expensive. Employment is expensive. Regulation is expensive. Government has made nearly everything more costly, and Andy Burnham’s answer is to cap one price and send the bill somewhere else.
‘But somewhere else is always someone else. A taxpayer. A business. A family. Someone will pay. And they will pay in higher taxes.’
A £2 cap on bus fares was introduced by the last Conservative government in 2022 to boost bus use in the wake of the pandemic.
The cap was raised to £3 by Keir Starmer and Rachel Reeves.
Mr Burnham said that reducing it to £2 would help give families more ‘breathing space’ in the cost of living crisis.
‘Good, affordable transport links are an essential,’ he said. ‘No one should be priced out of those and left behind.’
But it was unclear how the scheme will be paid for. Officials said it would be funded in part by ‘switching’ £400 million from a scheme that offers grants to pay for climate change projects in developing countries.
The Net Zero projects will still go ahead but will be paid for by loans. However, ministers were unable to say when the loans would be paid back or if ay interest would be charged.
Ms Alexander said: ‘'The detail will need to be worked out. We wanted to make the announcement today...'
Speaking to broadcasters on a visit to the South West on Wednesday, Mr Burnham batted away questions about the funding insisting he will 'always be honest with the public'.
'This week, the three policies I've announced – ending rough sleeping, the bus cap we're announcing today and the removal of VAT off electricity bills – are all fully funded, and that's the way I will go,' he said.
'And people will say, "Well, how? I've reprioritised. The public's priority is reducing cost of living pressures and that's what I'm doing.’
Meanwhile, Mr Burnham will spend Thursday in Scotland, where he will meet with Scottish and Welsh leaders and attend the opening of the Commonwealth Games.
He will warn the SNP that he is not ready to grant a second referendum on Scottish independence, saying: ‘I'm not focused on point scoring or discussing constitutional changes like referendums, I want practical measures to help people live well and bring back hope.’
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