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. Stephen Millard, Niesr’s deputy director for macroeconomics, suggested Mr Healey should look at the welfare bill or the pensions triple lock as areas for potential cuts. He also suggested Mr Healey should consider raising income tax, which would break Labour’s 2024 manifesto pledge not to raise that levy, national insurance or VAT.