ANDY Burnham has said October’s Budget will be “challenging” as Tories warn him not to hike taxes.

The PM blamed the for forcing him to make “difficult decisions”.

Britain's Prime Minister Andy Burnham in a suit and tie, looking serious.Prime Minister Andy Burnham blames the Iran War for forcing him to make ‘difficult decisions’ Credit: EPA Andy Haldane, President of the British Chambers of Commerce, speaking at a conference.Ex-Bank of England economist Andy Haldane says there has been an inability so far to cut public spending Credit: Getty

His admission came as , driven by higher pump prices and .

Mr said: “It is going to be challenging, because the picture around the world is challenging — particularly in the Middle East.

“We won’t take risks with people’s living standards or with the .”

Pressure is mounting on Chancellor over rising borrowing costs, which hit a 19-year high this week.

He may be left with no choice but to hike taxes or cut spending to maintain the Government’s financial cushion, which stood at £24billion at the last .

Experts at Oxford Economics have said he may have to find £11billion just to maintain the same buffer.

MONETARY UNION

A MILITANT union boss has been made a director of the Bank of England.

TUC General Secretary Paul Nowak was parachuted into the £20,000 job for three days’ work a month by Chancellor John Healey.

The left-wing firebrand, one of four new appointments, has called for a banking tax raid. He said he will give his salary to charity.

Shadow Chancellor Andrew Griffith said Nowak’s selection is “the last thing our country needs”.

But Mr Burnham was forced to hit back at ally and ex-Bank of England economist Andy Haldane who said there has been an inability so far to cut public spending.

Haldane said “the markets now suspect this is a traditional tax and spend socialist government, with better videos”.

The PM said: “We are not that.

“Already, I have taken difficult decisions in this job in relation to reprioritising Government spending, putting digital ID on hold for instance.

“So it’s not the case that we aren’t going to take difficult decisions.”

The Tories last night urged the Government not to squeeze households and firms even more ahead of the Budget at the end of next month.

Shadow Chancellor said: “Burnham and Healey must rule out tax rises and pledge not to introduce new taxes.”

WHITE VAN PLANS

EXTRA red tape hitting the self-employed on their tax returns must be delayed, the Tories say.

Sole traders and landlords earning over £30,000 must keep digital records and submit quarterly tax returns from April.

But Shadow Chancellor Andrew Griffith wants to ensure it does not extend to those earning more than £20,000 in 2028.

Chancellor John Healey had vowed in The Sun to put White Van Man and the self-employed at the heart of his Budget.