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The Tories have called on Andy Burnham and John Healey to “confront the grim reality of Britain’s economic peril” by cutting the welfare bill at the autumn Budget to control inflation.

Shadow chief secretary to the Treasury Richard Fuller accused the Government of plotting tax hikes to fund its plans instead of curbing spending.

Labour, in turn, accused the Conservatives of a “lack of self-awareness” after former prime minister Liz Truss’ mini-budget that caused market turmoil in 2022.

The Opposition have heightened their attacks over welfare spending in recent days after Burnham said national security cannot “come at the expense of social security.”

Downing Street insisted Burnham was committed both to funding defence and bringing down the benefits bill but not through “crude cuts” following the remarks at Prime Minister’s Questions last week.

Elsewhere, the Prime Minister has said he is prepared to take “difficult decisions” to protect the economy, prompting opponents to warn of pitch-rolling ahead of a Budget that will likely need to hike taxes or cut spending to meet Labour’s fiscal rules.

Earlier this week, he conceded next month’s statement will be “challenging” amid another rise in inflation and volatile global energy costs, but promised not to “take risks with living standards”.