Burnham Warns UK Faces 'Difficult Decisions' as Inflation Hits 3.1%
UK inflation rose to 3.1% in August, prompting warnings of 'difficult decisions' from Prime Minister Andy Burnham ahead of the Budget next month.
Burnham pointed fingers at Middle East chaos for fueling inflation and insisted the UK economy remains 'resilient', but economists are sounding the alarm that prices could continue to spiral out of control.
Former Bank of England chief economist Andy Haldane, who advised Burnham before taking power, criticized the government's willingness to cut public spending, warning of a 'fiscal Achilles' heel' and predicting that bond market investors will drive up borrowing costs unless there are significant cuts.
Haldane stated, 'The fiscal Achilles' heel of this government, thus far, has been its unwillingness and/or inability to cut public spending.'