Ex-Bank of England chief economist warns Andy Burnham's government is 'not working for the economy' ahead of the Budget

Andy Haldane urged Chancellor John Healey not to hit struggling households or businesses with further taxes and to rein in spending instead. He said running down the Treasury's headroom was 'a slightly odd response' while borrowing costs stay high. He warned the Iran and Ukraine wars have raised the risks facing the economy. He fears the Budget will be built to appease backbench Labour MPs.

He argued 'now is the time' for 'more insurance cover rather than less'.

Haldane claimed a bigger buffer would win lower borrowing costs from the markets.