How Trump may have blown a hole in Burnham’s desire to give ‘breathing space’ to hard-pressed Brits

28 comments 28 Next HAS Donald Trump blown a big hole on Andy Burnham’s desire to give “breathing space” to hard-pressed Brits? Well, that’s how it looked as I sat at the Bank of England yesterday as interest rates were hiked for the first time in three years. Donald Trump has been urged by Britain to help bring an end to the Iran conflict amid fears rising energy prices will fuel inflation and further interest rate hikes Source: AFP Andy Burnham’s promise to ease the pressure on household finances faces a fresh test as the Iran war continues to pile misery on Brits Source: AFP Advertisement Bank chiefs are desperate to control inflation and bring it back to its 2 per cent target .

But it looks like we could be waiting quite a while as households and business struggle with a major costs squeeze with the Iran war energy price shock. Sign up for the Politics newsletter Thank you! Email address Please provide a valid email. Your info will be used in accordance with our Privacy Policy You'll now receive top stories, breaking news, and more, straight to your email. It’s currently at 3.5 per cent and could hit 5 per cent next year.

To help contain inflation , rates went up yesterday from 3.75 per cent to 4 per cent . READ MORE ON POLITICS NOT A SMART MOVE Fuming voters in PM's consituency slam Labour plan to turn off Freeview DANCE FLAW Cringe moment Ed Miliband awkwardly tries to dance along to drums in Caribbean Bank of England governor Andrew Bailey says it’s more likely than not a second hike is on the cards if energy prices go back to where they were before this week’s dip.

The long and short of it is that the Middle East conflict needs to be resolved and energy prices need to come down. There are inflationary pressures in the pipeline and a further hike in December or February could well happen. All this at a time when average energy bills for households will hit £2,150 in January. Advertisement Most read in The Sun CRASH TRAGEDY Man, 19, dies after being struck by car on UK motorway on Halloween night FINAL DAYS Lawyer, 55, who defended Tupac killer 'Keffe D' dies days after guilty appeal POLITICS UNWRAPPED Labour was warned 2 years ago how to tackle the soaring welfare bill VILE 'RITUAL' Cop 'bullied by male colleagues after she refused to let them bite her bum' Andy Burnham and Chancellor John Healey wanted to offer this breathing space and they acted quickly when getting in office.

Action on capping bus fares and VAT off energy bills were small measures but it showed those living in Downing Street were attempting to help out. But with the public finances so tight the government can only do so much to help out. The £100 for 20 million homes this winter will only go so far when bills land on the doormat. Britain has called on the US President to bring an end to the hostilities to help the inflation fight. Advertisement Maybe the shocking results for the Republicans in the mid-term elections will help him decide to change course in the region.

But for the time being, the pain is going to get worse before it gets any better. 28 comments 28