Burnham Refuses to Rule Out Tax Rises Before Oct. 28 Budget as Inflation Hits 2.9%
Updated
Updated · bbc.co.uk · Aug 25
Burnham Refuses to Rule Out Tax Rises Before Oct. 28 Budget as Inflation Hits 2.9%
3 articles · Updated · bbc.co.uk · Aug 25
Summary
Andy Burnham said he will not rule out tax rises in the 28 October Budget, arguing he "won't be unrealistic" about strained public finances as his government prepares its first fiscal plan.
The pressure comes from funding cost-of-living pledges and bigger reforms such as social care while sticking to fiscal rules that require day-to-day spending to be covered by tax revenue rather than extra borrowing.
Burnham said measures already announced — including a £2 bus-fare cap and a VAT cut on household electricity bills — were funded by reprioritising spending, including shelving digital ID as a near-term priority.
July borrowing came in higher than expected despite record income-tax receipts, while inflation rose to a four-month high of 2.9% and is expected to climb further as the Iran war pushes up energy and fuel costs.
That backdrop leaves Burnham and Chancellor John Healey with little room for manoeuvre, with economists warning they will likely need either tax increases or spending cuts elsewhere in their first Budget.