Burnham’s talk of ‘breathing space’ at odds with reality of future Bank rate rises
News Source
•Thu, 17 Sep 2026 13:25:15 GMT
📰 What Happened
An analysis piece looks at Prime Minister Andy Burnham's promise to give voters “breathing space” on the cost of living. It says that promise is at risk if the Bank of England raises interest rates in the coming months.
The Bank's latest minutes left rates at 3.75 percent but hinted they may rise. Governor Andrew Bailey said that if the conflict in the Middle East goes on, policy may have to tighten.
🔍 The Backstory
Burnham moved into Downing Street in July, when the war had calmed and the UK economy was doing reasonably well. Since then the Iran conflict has restarted, and oil prices have climbed above $100 a barrel.
Inflation hit 3.1 percent in August, pushed up by fuel costs. Mortgage rates have already risen as markets prepare for higher rates. That squeezes household budgets even before the Bank makes a move.
🎯 Why It Matters
If prices keep rising and loans cost more, families have less left at the end of each month. Promises to cut living costs then become hard to keep.
An analysis piece looks at Prime Minister Andy Burnham's promise to give voters “breathing space” on the cost of living. It says that promise is at risk if the Bank of England raises interest rates in the coming months.
The Bank's latest minutes left rates at 3.75 percent but hinted they may rise. Governor Andrew Bailey said that if the conflict in the Middle East goes on, policy may have to tighten.
Burnham moved into Downing Street in July, when the war had calmed and the UK economy was doing reasonably well. Since then the Iran conflict has restarted, and oil prices have climbed above $100 a barrel.
Inflation hit 3.1 percent in August, pushed up by fuel costs. Mortgage rates have already risen as markets prepare for higher rates. That squeezes household budgets even before the Bank makes a move.
If prices keep rising and loans cost more, families have less left at the end of each month. Promises to cut living costs then become hard to keep.