Burnham warns of ‘difficult decisions’ in budget as inflation rises to 3.1%

PM rejects claim he leads a ‘tax-and-spend’ government, as Bank of England prepares for interest rates decision

Andy Burnham has said “difficult decisions” will need to be taken in next month’s budget after a rise in energy prices triggered by the Iran war drove UK inflation above 3%.

In a fresh blow for living standards amid the worsening damage to the global economy from the Middle East conflict, official figures showed soaring fuel prices pushed inflation from 2.9% in July to 3.1% in August.