Prime minister Andy Burnham has declined to say the government won’t raise taxes in the Budget on 28 October.
Speaking to ITV News during his first official visit to Kyiv in Ukraine, he said he “won’t be unrealistic” and the public need to understand that “we are in a challenging position”.
Burnham said his cost-of-living announcements so far, including cutting VAT on household electricity bills and capping bus fares at £2, are “funded commitments”, but when pushed on whether he will need to raise taxes in the Budget, he added:
“I won’t be unrealistic and people really need to understand that. We are in a challenging position. Whatever I do will be carefully thought through, it will be funded and there will be no more to come as we go into the Autumn.”
Despite the government’s promises to ease the cost-of-living for consumers and support struggling businesses, economists say chancellor John Healey will face significant challenges to fund the recently announced measures and any further actions amid warnings that the Middle East war will continue to squeeze public finances.
Last week it was revealed that the UK government ran a larger-than-expected £1.8bn deficit in July.
Economists had predicted a balanced budget, and the Office for Budget Responsibility projected a £500 million surplus.
“I will always take a careful approach to things. I ran Greater Manchester for 10 years and we ran a very tight ship with rock solid finances,” Burnham said.
SMEWeb will have full coverage of the 2026 Autumn Budget and what it means for small businesses on 28 October.