Burnham warned he will have to raise taxes or cut spending to fund his pledges
The National Institute of Economic and Social Research has warned UK Prime Minister Andy Burnham that he must either raise taxes or cut spending to fund his new policy pledges. Economists argue that limited borrowing capacity and higher-than-expected inflation make his current spending plans fiscally unsustainable.
Why it matters
This highlights the immediate fiscal challenges facing the new UK government and the potential for austerity measures or tax hikes to impact the public.
Leading economic think tank warns there is ‘no capacity’ to borrow more with inflation set to go higher than expected, growth set to plummet and a massive squeeze on spending
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