Andy Burnham hints at tax rises in Autumn Budget

Former Labour mayor Andy Burnham hinted at potential tax increases during the upcoming Autumn Budget, cautioning that he would not be "unrealistic" about the UK's financial situation. Following the recent reshuffle, Prime Minister addressed the cost of living crisis, promising "breathing space" to alleviate household burdens. Burnham, speaking during a visit to Ukraine, admitted to the fiscal challenges facing the country and stated that his spending packages would be fully funded.

When questioned about the necessity of tax rises to cover spending gaps, Burnham emphasized the importance of understanding the current circumstances, noting that any measures taken would be carefully considered, properly funded, and there would be no further increases before the Autumn budget. The limited scope for maneuvering was evident as top economists warned Chancellor John Healey would have restricted capacity to announce fresh spending proposals, given the soaring borrowing costs and the energy price shock stemming from the US-Iran war.

Burnham, however, pledged to support Brits in any way possible and avoided taking risks with people's jobs and household finances, stating that he would always exercise caution in his approach. He highlighted his experience in running Greater Manchester for ten years, emphasizing the importance of maintaining rock-solid finances. Earlier this week, official data revealed a surprising deficit in Healey's first month as Chancellor, with government borrowing at £1.8 billion in July, surpassing expectations.

Capital Economics suggested that borrowing in the upcoming Budget might be capped at around £15 billion, although tax rises were likely. Ashley Webb, a senior economist, cautioned that the UK was on track for its seventh consecutive year of a deficit exceeding four percent of GDP.