SNP Warns of 'Brutal Budget' Amid Rising Inflation and Interest Rate Fears

SNP's Dave Doogan has warned that the UK is facing another brutal budget, which could bring a bad case of Westminster deja vu.

The claim comes after Prime Minister Andy Burnham conceded that next month's Budget will be 'challenging', with Chancellor John Healey set to unveil his first budget in October.

According to Doogan, Labour ministers are softening people up for a budget of cuts and tax rises, citing the latest inflation figures which showed a five-month high of 3.1% in August, largely due to high petrol and diesel costs.

The Bank of England has warned that volatile global energy costs could push inflation even higher, with governor Andrew Bailey saying it's 'more likely' that interest rates will need to rise to help bring inflation back down to the 2% target.