Shadow chancellor Andrew Griffith has urged Andy Burnham to rule out further tax rises in next month's Budget, after economic figures showing rising inflation and borrowing costs left the government facing criticism over its fiscal credibility. The pressure follows a pointed remark from former Bank of England chief economist Andy Haldane, who said financial markets now view the government as "a traditional tax and spend socialist government with better TikTok videos", a jibe Burnham rejected, insisting his administration had shown it could take difficult decisions, such as scrapping digital ID cards to fund a VAT cut on energy bills.

Chancellor John Healey faces an estimated £15 billion shortfall in the public finances to address at the 28 October Budget, with Griffith arguing that almost £70 billion in tax rises since Labour took office has already "crushed" businesses and households, and calling for a moratorium on new levies including any "exit tax". Official figures showed inflation rose to 3.1 per cent in August, its highest in five months, while government borrowing costs have hit a 28-year high; the Bank of England was expected to hold interest rates at 3.75 per cent, though economists now forecast further rises ahead. Reform UK's Robert Jenrick also accused the government of preparing a "tax raid nobody voted for", while Burnham maintained the Budget would be "challenging" given global pressures, including the situation in the Middle East, but pledged not to take risks with living standards.