In this week’s news, we look at
- Prime Minister refuses to rule out tax rises in upcoming Budget
- Government to review business rates valuations for pubs and hotels
- Government borrowing higher than expected in July
Prime Minister refuses to rule out tax rises in upcoming Budget
Prime Minister Andy Burnham has refused to rule out tax rises in the upcoming Autumn Budget.
Mr Burnham recently stated that he ‘won’t be unrealistic’ in regard to the nation’s finances, adding that the public ‘needs to understand we are in a challenging position’.
The government will take a ‘careful approach’ to the economy, the Prime Minister confirmed. Economists have previously warned that the Chancellor will have little room to manoeuvre in the Budget on 28 October.
The Prime Minister has already taken action to help ease the cost of living by capping bus fares and cutting VAT on household electricity bills.
Mr Burnham said: ‘I will always take a careful approach to things. I ran Greater Manchester for ten years and we ran a very tight ship with rock solid finances.
‘Nothing will change as I come into this role as prime minister. I won't take risks with people's jobs or their livelihoods or their family finances.
‘I will try to help them in whatever way I can, I have already done some things that will help them.’
Press release: BBC
Government to review business rates valuations for pubs and hotels
The government will carry out a review of business rates valuations for pubs and hotels to improve fairness and transparency.
Pubs and hotels saw significant increases in rateable value at the 2026 revaluation due to the ending of pandemic-era valuations.
The review will help to ensure pubs and hotels can plan better for the future.
A Call for Evidence will make sure landlords, brewers and hoteliers are accurately represented in the review process.
The review will be provided to the Treasury by the end of March 2027 in time for the recommendations to be implemented at the next revaluation.
James Murray, Financial Secretary to the Treasury, said: ‘Last month we announced tax cuts for pubs to give them the breathing room they need. We're going further with a rethink of valuations - so that we can build a fairer system for the future.’
Press release: HM Treasury
Government borrowing higher than expected in July
Data published by the Office for National Statistics (ONS) has revealed that government borrowing was higher than experts had anticipated in July.
Borrowing totalled £1.8 billion in July. Official forecasters had expected a surplus of £500 million - meaning that borrowing was £2.3 billion more than predicted.
According to economists, the higher borrowing figure will constrain Chancellor John Healey’s economic growth plans and limit Prime Minister Andy Burnham’s room for manoeuvre for reducing the cost of living on UK households.
The Chancellor said he will make use of ‘strong fiscal discipline’ at the upcoming Autumn Budget.
Responding to the data, Mr Healey said: ‘We are cutting the deficit faster than any other G7 economy, while giving people a bit of breathing space with cost-of-living pressures and focusing support to get young people into work.’
The Chancellor will deliver the Autumn Budget on 28 October.
Press release: Office for Budget Responsibility and BBC