Brits are being warned to plan ahead for an imminent “hefty” bill that could drop later this year. A financial expert sounded the alarm after Andy Burnham completed his first week in office as Prime Minister after the departure of Sir Keir Starmer.

Mr Burnham has already promised the “biggest rebalancing of power our country has seen” and opened the new “Number 10 North” in Manchester, where he aims to spend part of his time working. There have also been announcements including a £2 cap on bus fares, business rates relief for pubs, clubs and smaller music venues and a cut in VAT on electricity.

But Matthew Ryan, head of market strategy at global financial services firm Ebury, has sounded the alarm over what might happen later this year. He said: Andy Burnham’s first week as prime minister is drawing to a close, and — as is customary when a new occupant arrives at Number 10 — it hasn’t been a quiet affair.

“Beyond the usual ministerial merry-go-round, the headline-grabbers have been tax cuts to electricity bills and pub rates, and the reversal of Starmer’s hike to the bus fare cap.

“While encouraging on the surface, these announcements have left investors jittery, given that: a) it’s unclear how the cuts will be funded, and b) they raise the risk of further tax hikes or additional borrowing down the line.”

Mr Ryan says he is concerned that there may be a sting in the tail later this year.

“At risk of sounding overly cynical, we see an element of sugarcoating the pill here,” he said.

“These are cuts that are cheap to deliver but politically potent – low-cost measures with high visibility, the kind that make for good headlines without denting the public finances much on their own.

“Burnham’s track record points to fiscal expansion rather than tightening, and we see it as inevitable that this initial round of crowd-pleasing, low-cost tax cuts will be followed by a much heftier bill at the Autumn Budget in a few months’ time.”