Burnham vows tough economic moves ahead of autumn Budget amid rising inflation
Prime Minister Andy Burnham says the government will protect living standards in the upcoming autumn Budget and is ready to take difficult economic decisions as CPI rose to 3.1% in August.
Prime Minister Andy Burnham announced that the government will not risk living standards when it delivers the autumn Budget, following Office for National Statistics data that showed consumer price inflation rising to 3.1% in August - the highest level in five months. The increase, up from 2.9% in July, was largely attributed to sharp jumps in petrol and diesel prices and higher long-haul airline fares linked to conflict in the Middle East.
Burnham emphasized his willingness to take “difficult decisions” to keep the economy on course. Analysts warn that inflation may peak near 4% in early 2027 as supply-chain pressures persist and household energy bills are set to rise about 4% from October. The Bank of England is expected to hold its policy rate at 3.75% at the next meeting, but further rate hikes are considered likely if inflation stays above the 2% target.
Why it matters
The Budget will determine how households cope with rising prices and shape the UK's economic outlook.
How this story developed
- Sep 1 Prime Minister Andy Burnham to Address Commons on First Day Back
- Sep 3 During the opening of Reform UK's three-day conference in Birmingham, deputy leader Richard Tice warned against Chinese buses and goods, urging support for British manufacturing. Yet the nearby merchandise stall offered caps, hoodies and water bottles that were produced in China alongside items from Bangladesh, Pakistan and India. Prices ranged from £5 for pins to £45 for hoodies, with a UK-made Nigel Farage tea towel costing £20. The speech also highlighted the party’s broader business agenda and its leader Nigel Farage’s recent controversies.
- Sep 4 Bond yields surged to their fastest rise since the 2022 mini‑budget, wiping out £12 billion of fiscal headroom.
- Sep 6 Burnham pledged to transfer failing utilities into public ownership.
- Sep 6 John Healey will launch a £150 million fund aimed at supporting university spin-outs and other high-growth companies across northern England.
- Sep 6 West Midlands Police have issued a call for the protester to come forward to assist their inquiry.
- Sep 7 Healey also pledged steps to curb borrowing costs, energy bills, regulation and labour expenses on UK businesses.
- Sep 9 Prime Minister Andy Burnham said he will not trim social security programmes to meet the 3 % of GDP defence spending goal and gave no timetable for reaching it.
- Sep 9 Burnham publicly rejected the welfare‑cut funding plan.
- Sep 11 Crypto founder Ben Delo has donated £36 million to Reform UK, the largest party contribution on record, as police investigate alleged illegal foreign funding.
- Sep 12 The donation was announced as a record contribution while a police probe into foreign funding continues.
- Sep 12 Christopher Harborne announced a further large gift to Reform UK.
- Sep 13 Burnham faced his first Prime Minister's Questions where opposition members pressed him on funding for his agenda.
- Sep 13 Reform UK received two £36 million crypto donations, totalling £72 million.
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