Burnham Has No Scope to Increase Borrowing, Think Tank Warns The National Institute of Economic and Social Research (Niesr) has delivered a sobering verdict on Prime Minister Andy Burnham's government, warning that his plans to boost defence spending and ease the cost of living will require either significant tax hikes or deep spending cuts.
The Niesr's economic outlook is grim: persistent inflation driven by the ongoing Iran war will continue to squeeze public finances until 2027. Inflation is expected to peak at 3.
8% in February 2027 before falling back to the Bank of England's 2% target.