Prime Minister Andy Burnham will have to raise taxes or cut spending to meet his pledges on defence and the cost of living, a major think tank has said. It questioned whether Burnham had "fully thought through" how his promises would be paid for, but said the prime minister will have to raise taxes or cut spending elsewhere. Stephen Millard, Niesr's deputy director for macroeconomics, said: "There's clearly no scope for increasing borrowing, so it is about choices." Labour's manifesto pledge was to not increase taxes for working people - including income tax, VAT and national insurance contributions - which Burnham has said he will uphold. The think tank said in its latest economic outlook that it does not believe the central bank will cut interest rates until 2028.