Burnham faces £24bn spending squeeze as inflation bites, top think-tank NIESR warns

The National Institute of Economic and Social Research has warned Prime Minister Andy Burnham and Chancellor John Healey that there is no scope for additional borrowing to fund cost-of-living measures. Facing a £24bn spending squeeze as inflation persists, the new Government will encounter very difficult trade-offs during the autumn Budget. While Burnham has announced various cost-of-living supports since taking office, the think tank highlights significant challenges regarding how these initiatives will be funded amidst economic pressure.