Andy Burnham is facing growing pressure to scrap the triple lock on state pensions, which economists say could help fix the parlous state of public finances.
The British Chamber of Commerce (BCC) has, for the first time, called on Chancellor John Healey to abandon the policy, which ensures the state pension rises each year by whichever is highest of inflation, wage growth or 2.5 per cent.
The BCC argued that ditching the triple lock and raising the state pension by inflation each year could save the Treasury £3.3bn over two years, and help repair troubled public finances, with councils facing large debts and the care system on the brink of collapse.
Shorts
As the 28 October Budget approaches, Healey and Burnham face a tricky balancing act of wanting to improve public services, ease the cost of living and boost economic growth – all while staying within the confines of their self-imposed public spending rules.
