Andy Burnham refuses to rule out tax rises in Autumn Budget – as PM admits ‘we are in a challenging position’

ANDY Burnham has refused to rule out tax rises in his Autumn Budget. The Prime Minister yesterday admitted “we are in a challenging position” amid growing fears of yet another tax raid. The Prime Minister yesterday admitted ‘we are in a challenging position’ amid growing fears of yet another tax raid Credit: AFP Mr Burnham warned Brits he ‘won’t be unrealistic’ ahead of Chancellor John Healey’s first Budget Credit: Getty Mr Burnham warned Brits he “won’t be unrealistic” ahead of Chancellor John Healey’s first Budget on October 28. Experts believe taxes will be raised due to the financial impact of the Iran war and the need for increased defence spending. Sign up for the Politics newsletter Thank you! Britain’s defence budget is due to hit 2.7 per cent of national income (known as GDP) by the end of the decade. The new PM has committed to raising this to 3.5 per cent by 2035. Mr Burnham told ITV: “I will always take a careful approach to things. I won’t take risks with people’s jobs or livelihoods or their family finances. “I will try to help them in whatever way I can and we have already done some things that will help them going forward. “I will do what I can, but I won’t be unrealistic and people need to understand that. “We are in a challenging position. Whatever I do will be carefully thought through. Most read in The Sun “It will be funded. That is exactly what I have done so far but there will be more to come as we go into the autumn.” It comes after he separately told LBC he would honour Labour’s manifesto pledge not to raise income tax, VAT or National Insurance. But the PM stopped short of ruling out increases to other taxes in the upcoming Budget. Experts have warned the Government could be set to raise taxes to pay for its spending plans, as it faces a £24billion squeeze on public finances. The PM will need to fund the numerous policies he’s pledged so far, include cutting business rates for pubs and capping single bus fares at £2. And Government borrowing also unexpectedly jumped to £1.8billion earlier this month – causing a headache for Mr Healey. Economist Jim O’Neill urged the PM to cut welfare and avoid tax hikes. The UK is spending nearly £1billion a day on welfare, and has nearly £3trillion of debt after worse than expected borrowing figures. Lord O’Neill told the BBC: “I am a supporter of a more sensible approach to government spending and taxation. “As Andy himself has emphasised, genuine welfare reform. If the country wants to have better longer-term growth performances, we have got to deal with those things. “I would include the (pensions) triple-lock as well as a more sensible approach to welfare spending.” The Chancellor has previously stressed that any new spending spree on the military must be properly budgeted for. Mr Healy sensationally quit his role as Defence Secretary in a blistering row with then-Prime Minister Sir Keir Starmer over military funding. Mr Healey said the former PM’s planned spending was nowhere near enough “to defend the country at this time of rising threats”. The bombshell resignation sparked a full-blown mutiny at the Ministry of Defence with Armed Forces minister Al Carns also quitting in protest. 6 comments6