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Burnham says he will not rule out tax rises ahead of October Budget

Burnham said the state of public finances is challenging and warned experts that options in the first Budget on 28 October may be limited by higher borrowing and rising inflation pressures.

Reported · Written up by our desk · Trade & Tariffs

Andy Burnham said he would not rule out tax rises in the upcoming autumn Budget, arguing he will take a careful approach because public finances are challenging. The prime minister said he intends to keep his cost of living pledges, including previously announced measures such as capping bus fares at £2 and cutting VAT on household electricity bills, which he said were funded by reprioritizing spending.

Burnham also acknowledged remaining questions about how major policies, including social care reforms, will be paid for. He defended a decision to deprioritize digital ID, saying funding was redirected to other priorities.

Experts, according to the BBC, have warned Burnham and Chancellor John Healey may have little financial room for manoeuvre in the first Budget on 28 October, given pressures on borrowing and inflation. The outlet cited official figures showing the government borrowed more than expected in July despite a record month for income tax receipts, and noted inflation reached 2.9% in July, with expectations it could rise further due to the impact of the Iran war on energy prices and fuel costs.

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