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Andy Burnham has refused to rule out tax hikes in the Budget. The Prime Minister said he “won’t be unrealistic” about the state of the public finances, adding that the UK was in a “challenging position”. He defended policies such as cutting VAT on household electricity bills and capping bus fares at £2 as “funded commitments”. But questions remain over how some pledges will be paid for, including £5 billion in defence spending, which was announced before he entered No 10, and his plans for major reforms to the social care system.

Asked whether the public should accept they will have to pay more in tax rises, the Prime Minister told ITV News: “They don’t necessarily need to accept that. What I have put out so far, I wouldn’t say is everything, but they are the first steps and they are significant.”

Pressed on whether he would need to fill in spending gaps with tax hikes, he said: “I will always take a careful approach to things. I ran Greater Manchester for 10 years and we ran a very tight ship with rock solid finances.

“Nothing will change as I come into this role as Prime Minister. I won’t take risks with people’s jobs or their livelihoods or their family finances.

“I will try to help them in whatever way I can, I have already done some things that will help them.”

He added: “I will do what I can but I won’t be unrealistic and people really need to understand that.

“We are in a challenging position, whatever I do will be carefully thought through, it will be funded and there will be more to come as we go into the autumn.”

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But Shadow chancellor Sir Mel Stride said Mr Burnham was “staring down the inevitable barrel of tax rises” after announcing pledges “without a plan”.

The Conservative politician said: “It doesn’t matter who is in charge, it is the Labour Party itself that’s the problem.”

Reform UK’s Treasury spokesman Robert Jenrick added: “Instead of slashing the ballooning benefits bill, scrapping foreign aid to rich counties or getting rid of mad net zero subsidies, Andy Burnham is going to raise people’s taxes. He may talk differently, but he’s exactly the same as Keir Starmer.

“The last thing this country needs is another tax assault on working people as they’re already struggling with the cost of living. Reform UK will be opposing Burnham’s tax rises every step of the way.”

Mr Burnham previously said he would stick to Labour’s manifesto pledge not to hike taxes for “working people”.

It comes as Chancellor John Healey is preparing his Budget which he will deliver on October 28.