Sharp fall in debt interest payments last month helped lower government borrowing costs but experts warn the new Andy Burnham government still faces tough challenges ahead, with the threat of tax rises

Inflation is expected to have eased last month in a welcome but temporary boost for Andy Burnham’s incoming government.

After taking power, Andy Burnham purged Keir Starmer’s loyalists from cabinet and rewarded his left-wing backers, as the pound slipped and gilt yields rose.