Burnham has to sell Bank rate rises as ‘breathing space’ – good luck with that
Prime Minister Rishi Sunak’s plan to ease the cost‑of‑living squeeze is being undermined by climbing inflation and the rising cost of government borrowing. The Treasury is portraying recent Bank of England rate hikes as a short‑term “breathing space” for households, but analysts warn that higher interest rates could increase debt servicing and limit fiscal flexibility.