- Prime minister Andy Burnham has refused to rule out tax increases in the upcoming Budget while insisting he will honour manifesto commitments.
- Burnham emphasised a careful approach to public finances, maintaining that pledges to cap bus fares at £2 and lower VAT on household electricity bills are fully funded.
- Official statistics revealed government borrowing unexpectedly rose to £1.8 billion in July, increasing fiscal pressure on chancellor John Healey.
- Inflation surged to a four-month high of 2.9% in July amid the fallout from the Iran war, with experts warning that tax hikes or spending cuts are now unavoidable.
- Shadow chancellor Sir Mel Stride criticised the government, stating that tax rises are inevitable following pledges made without a clear financial plan.
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