Burnham refuses to rule out tax rises in autumn Budget

Andy Burnham has refused to rule out tax rises in the upcoming autumn Budget, saying he "won't be unrealistic" about the "challenging" state of public finances.

The prime minister said he would take a "careful approach" to the economy, and defended his previously announced cost of living pledges as funded spending commitments.

Burnham became prime minister in July promising to give people breathing space and help with the cost of living, but questions remain over how major policies such as social care reforms will be funded.

Experts have previously warned that he and Chancellor John Healey will have little financial room to manoeuvre in their first Budget on 28 October.

Speaking during his first visit to Ukraine , Burnham said the policies announced so far including capping bus fares at £2 and cutting VAT on household electricity bills were "the first steps that I've felt able to make", and were doable because he was able to reprioritise funding from elsewhere.

"I took the decision early on that digital ID wasn't the top priority for now. And so we've reprioritised funding to other priorities," he said in an interview with ITV.

Asked if the public needed to accept some of the new policies would have to be paid for in tax rises, Burnham said they wouldn't necessarily have to accept that.

Pushed on whether he would need to raise taxes to cover spending gaps, he said: "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.