Andy Burnham has been told he must either raise taxes or cut spending in a concerning ultimatum, as there is "no scope" for extra borrowing. The new Prime Minister has been given an ultimatum | GETTYHe said: "There's clearly no scope for increasing borrowing, so it is about choices. Last week, Mr Burnham declared that his administration will be a "cost of living Government" after years of hiked grocery prices and energy bills. Together with his newly appointed Chancellor John Healey, the Prime Minister has since unveiled a series of support measures for households. Mr Burnham indicated that he and Mr Healey are working to ensure the defence investment plan is "fully funded" before the autumn Budget.