Andy Burnham has suggested tax rises could be on the cards in the looming Autumn Budget, warning he "won’t be unrealistic" over the state of the public purse. He stated that any spending packages would be fully funded.
The comments signal potential tax increases that could impact households and businesses, adding to existing fiscal pressures and economic uncertainty.
Andy Burnham, Mayor of Greater Manchester, has indicated that tax rises may be necessary in the upcoming Autumn Budget, citing the challenging fiscal position of the UK. He emphasized that any spending initiatives would be carefully considered and fully funded, stating he "won’t be unrealistic" about the public purse.
This comes as economists warn Chancellor John Healey has limited room for new spending pledges due to increased borrowing costs and energy price shocks. Government borrowing in July was reported at £1.8bn, surpassing market expectations. Analysis suggests that while some additional borrowing might be acceptable, tax increases are likely, with the UK projected to post a deficit above four percent of GDP for the seventh consecutive year.
Burnham, who previously managed Greater Manchester's finances tightly, stated his approach would be careful and funded, aiming not to "take risks" with jobs or household finances. The comments contrast with the Prime Minister's pledge to ease the cost of living.
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