Andy Burnham has hinted at tax rises in the Autumn Budget as he confronts the state of the public finances.
On his arrival in Downing Street, the Prime Minister pledged to give people “breathing space” and ease the cost of living. He has also announced VAT cuts and a review of business rates in England.
However, he has admitted that fiscal pressures facing the UK mean tax rises could be on the cards to meet his support his spending commitments.
“I won’t be unrealistic and people really need to understand that,” he told reporters accompanying him in Ukraine.
“We are in a challenging position, whatever I do will be carefully thought through, it will be funded and there will be no more to come as we go into the Autumn.
“I will always take a careful approach to things. I ran Greater Manchester for 10 years and we ran a very tight ship with rock solid finances.”
Last week, official figures revealed Government borrowing at £1.8bn in July, which overshot market expectations. Analyst had predicted there would be no difference between expenditure and receipts in July.
Earlier this month a group of leading financial figures urged the Chancellor John Healey to engage properly with business before the Budget on 28 October and not to allow leaks that create instability.
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