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I won’t be unrealistic about tax rises, says Burnham

Burnham said he will take a funded approach to the economy as official figures showed UK borrowing rose to £1.8 billion in July.

  • Prime Minister Andy Burnham declined to rule out tax increases in his upcoming Budget during a trip to Ukraine, stating he "won't be unrealistic" about the state of public finances.
  • Official data from the Office for National Statistics reported government borrowing rose to £1.8 billion in July, a 68.7% increase year-on-year; inflation surged to a four-month high of 2.9%.
  • Chancellor John Healey warned Cabinet ministers to prepare for spending cuts as economists from the National Institute of Economic and Social Research cautioned that revenue or spending changes are necessary.
  • Doubts persist regarding how the government will fund policy pledges, including a VAT reduction, after former minister Darren Jones stated the plan to scrap the digital ID scheme was not costed.
  • Burnham defended his "funded commitments" while maintaining he would adopt a "careful approach" to the economy, promising more details as the government prepares for the autumn Budget.
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Daily Express broke the news in London, United Kingdom on Sunday, August 23, 2026.
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