Prime Minister Andy Burnham has refused to rule out further tax rises in the October Budget, warning that Britain faces a “challenging” financial outlook.
Speaking during his first official visit to Ukraine, Burnham said he would not be unrealistic about the pressures facing the public finances and insisted that his Government would not take risks with jobs, livelihoods or household finances.
The Prime Minister also ruled out calling an early general election, rejecting speculation that he could seek a personal mandate following his arrival in Downing Street.
Burnham refuses to rule out tax rises
Asked about the prospect of tax increases in the autumn Budget, Burnham declined to rule them out.
He told ITV News that the public needed to understand that the country was in a challenging position and said he would not be unrealistic about the choices facing the Government.
Burnham said he would try to help households wherever possible but would not pursue policies that put jobs, livelihoods or family finances at risk.
The comments leave open the possibility that Chancellor John Healey could announce increases to taxes outside the areas protected by Labour's existing manifesto commitments.
Income tax, VAT and employee National Insurance pledge remains
Burnham has maintained Labour's commitment not to increase the basic, higher or additional rates of income tax, VAT or employee National Insurance.
That does not rule out changes elsewhere in the tax system, and the Government has not yet set out the detailed tax measures that will feature in the Budget.
The Autumn Budget is due to take place on 28 October and will be the first under Burnham's premiership and Healey's chancellorship.
Until the Treasury announces its decisions, speculation about individual taxes remains just that, and Burnham's remarks do not confirm that any particular tax will rise.
Prime Minister rules out early general election
Burnham also said he would not call an early general election.
The Prime Minister argued that triggering a national vote would risk creating political and economic disruption at a time when the Government needed to focus on the country's challenges.
The decision is consistent with the position Burnham set out before becoming Prime Minister, when he indicated that he did not intend to seek an immediate election after taking office.
His latest remarks therefore reaffirm that position rather than representing a new change of policy.
Public finances under pressure ahead of Budget
The Government enters the autumn Budget facing pressure to fund its spending commitments while maintaining its fiscal rules.
Burnham has promised measures aimed at easing the cost of living while also supporting increased defence spending, leaving the Treasury with difficult choices over taxation and departmental spending.
Recent economic data has offered some encouragement, but inflation and government borrowing continue to place pressure on the fiscal outlook.
Budget set to test new Government
The October Budget is expected to be one of the first major domestic tests of Burnham's premiership.
His refusal to exclude tax rises increases scrutiny over where the Government may seek additional revenue while retaining its promises on income tax, VAT and employee National Insurance.
However, no specific new tax increase was announced in Burnham's comments, and the eventual decisions will be set out by the Government at the Budget.