Prime Minister Andy Burnham delivers closing remarks during the first National Day for victims and survivors of terrorism memorial event at Lancaster House in London, England, Friday, Aug. 21, 2026. Andy Burnham has insisted he “won’t be unrealistic” about the state of public finances and refused to rule out tax rises in the autumn Budget. The prime minister said Britons must understand the country is “in a challenging position” when asked how he would fund the public spending commitments he’s made during his first month in the job. Chancellor John Healey is expected to hike taxes when unveils the government’s spending plans on October 28, due to the economic fallout from the Iran war and the pressing need to increase defence spending. Speaking to ITV News, Burnham said: “I will always take a careful approach to things. I won’t take risks with people’s jobs or livelihoods or their family finances. “I will try to help them in whatever way I can and we have already done some things that will help them going forward. I will do what I can, but I won’t be unrealistic and people need to understand that. “We are in a challenging position. Whatever I do will be carefully thought through. It will be funded. That is exactly what I have done so far but there will be more to come as we go into the autumn.” The prime minister has promised to follow Labour’s 2024 manifesto, which vowed not to increase VAT, income tax or national insurance. Energy regulator Ofgem is expected to hike the energy price cap by 4% on Wednesday, up to £1,729 annually for the average household between October and December. Healey also needs to find at least £4.7 billion for extra defence spending along with funding for the cost of living promises Burnham has made since getting into office. The pressure from the Iran war has reportedly seen the government’s fiscal headroom decline from £22 billion to about £15 billion, while inflation also rose to 2.9% in July due to the conflict. Burnham also told ITV News he would not call an early election, saying: “An election just brings a load of point scoring, a load of arguments, a load of division. Actually what I’m going to try to do in this moment as prime minister is bring people together, get some hope going around the country.” Listen to Commons People, the podcast that makes politics easy. Every week, Kevin Schofield and Kate Nicholson unpack the week’s biggest stories to keep you informed. Join us for straightforward analysis of what’s going on at Westminster. Related... Russia Accuses Andy Burnham Of Adding 'Fuel To The Fire' Of Ukraine War Andy Burnham Visits Kyiv For His First Overseas Trip As Prime Minister Burnham To Hand Mayors Power To Take Over Local Planning Decisions