Chancellor John Healey has told the Cabinet they must make be prepared to make cuts to finance Andy Burnham's new spending pledges. The start of Mr Burnham's premiership has seen a succession of announcements likely to require additional spending. Mr Healey will face significant challenges as he finds more money for Mr Burnham's devolution priorities and increased defence spending amid warnings the Iran war will further squeeze the public finances. He would not commit to raising defence spending to 3% of GDP by 2030, but suggested it could form part of next year's spending review. Looking back at Mr Burnham's first two weeks as Prime Minister, Mr Healey said the new Government was "working fast to restore hope and back Britain's communities" and had "begun to kickstart growth in every postcode".