Andy Burnham has refused to rule out tax rises in the Budget, warning that the public finances are in a "challenging" state. While the Prime Minister said previously announced measures, including scrapping VAT on electricity bills and restoring the £2 bus fare cap, would be funded by reprioritising spending, he left the door open to further tax increases, saying future measures would be carefully considered and fully funded. Mr Burnham has pledged to stick to Labour’s manifesto commitment not to increase income tax, VAT or employee National Insurance, meaning Chancellor John Healey has a narrower range of options for raising revenue. Asked whether he would need to fill in spending gaps with tax hikes, the PM said: "I will always take a careful approach to things." Shadow Chancellor Sir Mel Stride said that Mr Burnham is "staring down the inevitable barrel of tax rises."
