The Guardian ·
Burnham warns of ‘difficult decisions’ in budget as inflation rises to 3.1%
PM rejects claim he leads a ‘tax-and-spend’ government, as Bank of England prepares for interest rates decision
Andy Burnham has said “difficult decisions” will need to be taken in next month’s budget after a rise in energy prices triggered by the Iran war drove UK inflation above 3%.
In a fresh blow for living standards amid the worsening damage to the global economy from the Middle East conflict, official figures showed soaring fuel prices pushed inflation from 2.9% in July to 3.1% in August.
With the government under pressure as the fallout from the war rattles global financial markets, the prime minister signalled the 28 October budget would take into account investor fears over the hit to the public finances.
