Andy Burnham says he will “stick to the fiscal rules” and help ease cost-of-living pressure

Amid a worldwide retreat from government debt, Britain’s 10-year borrowing rate touched its highest point since 2008 on Wednesday, constraining the choices facing Prime Minister Andy Burnham before his first budget lands on 28 October. In his initial Prime Minister’s Questions exchange with opposition leader Kemi Badenoch, Burnham defended the preceding day’s Commons statement — its promises included greater state involvement in utilities, a 3 percent military spending increase, and household-cost relief. Badenoch had said he turned down no spending request; former economic adviser Jim O’Neill called the approach unhelpful to markets. Burnham answered that the budget would respect promised deficit reduction while making life more affordable. Chancellor John Healey must absorb higher debt-interest costs into the public finances and is scheduled to present his growth strategy Monday.