Andy Burnham's former adviser warns Labour's plans risk a Truss-style crisis with a 'Budget for the backbenchers'

Andy Haldane, the former Bank of England chief economist Andy Burnham sounded out before entering Downing Street, expects tax rises and more borrowing in John Healey's Budget next Wednesday. He said neither would help growth. Haldane urged ministers to protect the Treasury's 'headroom', which he called Britain's 'insurance cover'. He said he preferred the Conservatives' plans to slash spending and red tape.

'Now is the time for this government to be putting on more insurance cover,' Haldane argued.

Kemi Badenoch warned Healey could do more harm than his predecessor Rachel Reeves.

Haldane said the government's current path 'does not work for the economy'.