Andy Burnham warned not to hike taxes as flatlining economy puts Labour’s economic plans under pressure

With the economy stagnating, incoming Prime Minister Andy Burnham faces pressure to avoid hiking taxes, as critics argue that higher taxes have previously stifled economic growth. Shadow Chancellor Sir Mel Stride cautioned against such measures, emphasizing that the current flatlining economy needs careful handling. The IMF echoed this sentiment, advising the government to be judicious with spending demands and to prioritize economic stability over new financial commitments. This debate underscores the broader challenges Labour's economic plans face amid economic stagnation.