Stephen Millard, from the National Institute of Economic and Social Research, said he did not think cost-of-living support measures were the ‘answer’A think tank has urged Andy Burnham to raise taxes or cut public spending to fund new cost-of-living and defence commitments, as it warned there was no scope for extra Government borrowing. Mr Burnham pledged to lead a “cost-of-living Government” when he entered Downing Street as Prime Minister last week. Stephen Millard, Niesr’s deputy director for macroeconomics, said he did not think cost-of-living support measures were the “answer” and that it was the “Bank of England’s job to hit the inflation target”. Mr Burnham has also reiterated that the Government stands behind its previous pledge to spend 3.5% of gross domestic product (GDP) on defence by 2035. Labour’s manifesto pledge was to not increase taxes for working people, which Mr Burnham has pledged he will stick to.