British PM Says to Make 'Difficult Decisions' as Inflation Rises
Inflation rose to 3.1% in August as 30-year gilt yields hit their highest level since 1998, limiting finance minister John Healey’s budget options.
- The Office for National Statistics reported on Wednesday that inflation rose to 3.1 percent in August, up from 2.9 percent the previous month, piling pressure on British Prime Minister Andy Burnham and Finance Minister John Healey ahead of next month's Budget.
- Rising borrowing costs have spurred criticism from former Bank of England official Andy Haldane, who claimed investors now view the government as a "traditional tax and spend socialist government" after gilt yields touched multi-decade highs this week.
- Burnham insisted he is prepared to take "difficult decisions" to keep the economy on track, while Haldane warned the Prime Minister faces a "straight choice" between raising taxes and cutting public spending at the October 28 Budget.
- Finance Minister Healey said the war in the Middle East is impacting inflation worldwide, affecting household bills and petrol prices, though experts expect inflation to continue climbing through year-end.
- Healey has pledged to maintain strict fiscal discipline and follow rules set by predecessor Rachel Reeves, though sceptics warn limited public finances leave little room to fund major commitments in the upcoming spending update.
15 Articles
15 Articles
The Independent
Western Morning NewsBurnham admits Budget will be ‘challenging’ after inflation rises
Chancellor John Healey will deliver the first Budget under Andy Burnham’s leadership next month
The UK Head of Government prepares a high-voltage budget after an acceleration of the price rise in August, while seeking to preserve the purchasing power of households The First
Faced with a further acceleration of inflation to 3.1% in August, British Prime Minister Andy Burnham warned Wednesday that he would take "hard decisions" to stabilize the economy. ...
British PM says to make 'difficult decisions' as inflation rises
The Consumer Prices Index rose 3.1 percent in the 12 months to August, up from 2.9 percent the previous month, the Office for National Statistics said. The figure, which met analysts' expectations, piles pressure on Burnham and his finance minister John Healey to ease the cost of living for households in the Labour government's budget update next month. "We will take difficult decisions to make sure the economy remains on track," Burnham said du…
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