Burnham Warns of Tough Choices After Inflation Rise

British Prime Minister Andy Burnham said his government is prepared to make difficult decisions to keep the economy on track as UK inflation rose to 3.1% in August, a five-month high. He described the increase as a concern but said the broader economy remained resilient, while attributing some pressure to turmoil in the Middle East and higher energy costs. Rising government borrowing costs are narrowing Chancellor John Healey’s room for maneuver ahead of the October 28 budget, increasing pressure to balance household support with fiscal restraint. Former Bank of England chief economist Andy Haldane criticized the government’s economic approach, saying markets viewed it as a traditional tax-and-spend administration; Burnham rejected that characterization and cited spending reprioritization as evidence of fiscal discipline.