Cut welfare to control inflation, Tories tell Burnham

The Tories have called on Andy Burnham and John Healey to “confront the grim reality of Britain’s economic peril” by cutting the welfare bill at the autumn Budget to control inflation.

Shadow chief secretary to the Treasury Richard Fuller accused the Government of plotting tax hikes to fund its plans instead of curbing spending.

Labour, in turn, accused the Conservatives of a “lack of self-awareness” after former prime minister Liz Truss’ mini-budget that caused market turmoil in 2022.

The Opposition have heightened their attacks over welfare spending in recent days after Mr Burnham said national security cannot “come at the expense of social security.”

Downing Street insisted Mr Burnham was committed both to funding defence and bringing down the benefits bill but not through “crude cuts” following the remarks at Prime Minister’s Questions last week.

Elsewhere, the Prime Minister has said he is prepared to take “difficult decisions” to protect the economy, prompting opponents to warn of pitch-rolling ahead of a Budget that will likely need to hike taxes or cut spending to meet Labour’s fiscal rules.

Earlier this week, he conceded next month’s statement will be “challenging” amid another rise in inflation and volatile global energy costs, but promised not to “take risks with living standards”.

Office for National Statistics (ONS) figures show inflation accelerated to a five-month-high of 3.1% last month as higher fuel prices and airfares pushed up the cost-of-living for Britons.

Mr Fuller said: “The facts facing the Chancellor are stark as he prepares his first Budget. Yet there is no sign that either John Healey or Andy Burnham will confront the grim reality of Britain’s economic peril.

“Instead of cutting spending, Labour want to use tax hikes and ever-greater debt to cover the growing chasm in their sums. That could spell disaster for Britain, as the bond markets rail against a return to the dark days of the 1970s.”

Labour hit back by pointing to remarks made by shadow chancellor Andrew Griffith, who earlier this month said Ms Truss’ mini-budget was “not all bad” while insisting he had no involvement in it.

A party spokesperson said: “The lack of self-awareness from the Tories is frankly staggering. They left families across the country with spiralling bills and sky-rocketing mortgages. Rather than apologise, their new shadow chancellor said the economy-crashing mini-budget ‘wasn’t all bad’.

“While the Conservatives continue to defend the mistakes that crashed the economy, Labour is focused on delivering for working people: easing cost of living pressures, getting more people into work, and help to drive growth in every corner of the UK.”

Chancellor Mr Healey will deliver the Budget on October 28.