Andy Burnham, the shadow chancellor, faces pressure to rule out any new tax increases in his upcoming October 28 Budget after being criticized as a "tax and spend socialist." Former Bank of England officials have questioned the government’s ability to manage public finances effectively. Andrew Griffith, Labour's own treasury spokesman, called for a moratorium on further taxes, citing economic challenges and the need to ease pressure on small businesses. The budget is expected to address an estimated £15 billion deficit in public finances.
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Andy Burnham has been urged to rule out tax rises after warning of 'difficult decisions' in next month's Budget.
Shadow chancellor Andrew Griffith called for a moratorium on further tax rises, warning they are 'crushing' the economy.
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they → see → economy
The call came after the Prime Minister warned the 28 October Budget 'is going to be challenging' following official figures showing war in the Middle East has pushed up inflation and raised the government's borrowing costs.
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war → come → costs
Mr Burnham bridled at warnings from two former Bank of England chiefs that his government has failed to convince financial markets that it has a grip on the public finances.
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it → bridle → finances
The Bank's former deputy governor Sir Charlie Bean said markets were jittery because 'there is a question mark about whether this govt is willing to take the difficult decisions needed to maintain fiscal sustainability'.
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govt → say → sustainability
In a withering assessment Andy Haldane, former chief economist at the Bank, said the markets 'now suspect that this is a traditional tax and spend socialist government with better TikTok videos.'
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this → say → videos
Mr Haldane, a sometime adviser to Mr Burnham on the economy, added: 'The fiscal Achilles' heel of this government, thus far, has been its unwillingness and/or inability to cut public spending.
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heel → add → spending
Within financial markets, we've gone from the cautious optimism of the summer months to the studied scepticism of September.'
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we → go → September
On Wednesday, Mr Burnham hit back at claims he is a 'tax and spend socialist', saying: 'That does not tell the story.
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That → hit → story
He said he had proved his willingness to take 'difficult decisions' by scrapping plans for digital ID cards to free up cash to cut VAT on energy bills.
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he → say → bills
The PM bridled at claim he's just a 'tax and spend socialist with better TikTok'
Shadow chancellor Andrew Griffith called for a moratorium on new taxes
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Griffith → bridle → taxes
But Mr Griffith urged him to go further and rule out tax rises in next month's Budget when Chancellor John Healey will have to fill a black hole in the public finances estimated at £15 billion.
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Healey → urge → billion
Mr Griffith, who will outline his own economic plans in a speech on Thursday, said the country was being 'crushed' by taxes after Labour introduced almost £70 billion in hikes in its first two Budgets.
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Labour → outline → Budgets
'Labour are squeezing small businesses dry.
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Labour → squeeze → businesses
They are taxing them too much and crushing them with a complex tax system that is working against them.
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that → tax → them
Labour's 'jobs tax' and business rates raid have done immense damage, and their employer red tape has placed yet another burden on the shoulders of businesses.
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tape → do → businesses
'We need to cut taxes and make the tax system easier to navigate.
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system → need → taxes
Andy Burnham and John Healey must rule out tax rises at the Budget and pledge not to introduce an Exit Tax or any other new taxes.
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Burnham → rule → Tax
Reform UK's Treasury spokesman Robert Jenrick accused the PM of 'rolling the pitch for a tax raid nobody voted for'.
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nobody → accuse → raid
He added: 'It's a different Prime Minister but the same old tax and spend agenda that's failed the country.'
The warning came as official figures showed inflation rose to 3.1 per cent last month on the back of a surge in petrol prices.
Economists expect the Bank of England to hold interest rates at 3.75 per cent when it meets today.
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it → add → cent
But they are now forecasting as many as four rate rises in the next 12 months amid a worsening global outlook.
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they → forecast → outlook
Government borrowing costs have also soared in recent weeks, hitting a 28-year high, amid concern about Mr Burnham's spending plans.
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costs → soar → plans
The PM yesterday acknowledged the rate of inflation is 'a concern' as Chancellor John Healey pulls together the Budget.
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Healey → acknowledge → Budget
Mr Burnham said there was 'a lot of resilience in the British economy'.
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Burnham → say → economy
But he warned that the Budget 'is going to be challenging, because the picture around the world is challenging, particularly the situation in the Middle East'.
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picture → warn → East
He added: 'We won't take risks with people's living standards or with the economy as a whole, so we will take it all into account.'
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we → add → account
Grant Fitzner, chief economist at the Office for National Statistics, said sharp price rises for petrol and diesel, coupled with higher air fares had driven the latest increase in inflation.
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rises → say → inflation
Mr Healey said the war in the Middle East was 'impacting on inflation worldwide, not just here at home, in our bills, our weekly shop and at the petrol pumps'.
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war → say → pumps
In a downbeat assessment, the Chancellor warned that 'restoring hope won't happen overnight' – but insisted he is committed to providing 'breathing space' to help people cope with the rising cost of living.
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people → warn → living
The Aporia
