Andy Burnham Warned Over Debt as IMF Chief Demands Tough Budget Decisions Andy Burnham warned over spiralling debt as IMF chief Kristalina Georgieva calls for tough fiscal decisions ahead of Chancellor John Healey's Budget on October 28. Andy Burnham has received a stark warning over spiralling debt and the burden on businesses ahead of the Budget, as IMF chief Kristalina Georgieva said governments were failing to take the tough decisions needed to stabilise their books. The intervention comes as Chancellor John Healey grapples with an increasingly bleak outlook for his fiscal package on October 28. IMF Chief Demands Fiscal CourageSpeaking to the BBC on the sidelines of the UN General Assembly in New York, Ms Georgieva said governments needed to show courage. She said successive economic shocks had been pushing debt levels up like a staircase not to heaven but there was no action to contain that service cost.The IMF managing director said two things must be done: bring debt levels down, put fiscal consolidation as a priority, and make sure that the central banks deliver on their mandate for price stability. She added that it is impossible to stress strongly enough how critical it is to get the courage to take the steps that are necessary.Ms Georgieva described these as politically tough steps to take, but necessary steps to take. She said the UK's position was not very different from other major states, despite nervous investors driving up interest rates on borrowing.Borrowing Surges Beyond ForecastsEconomists warned the walls are closing in on Mr Healey yesterday as figures showed government borrowing surging. The public sector borrowed £18.3billion last month, up around a fifth on August 2025, as rising tax revenues failed to keep pace with Labour's spending.That was around £3billion more than expected, and £3.5billion more than the Treasury's Office for Budget Responsibility (OBR) watchdog predicted. Some £8.8billion went on interest payments for the debt mountain, which was hovering just below £3trillion.The Tories have been urging Mr Healey to curb benefits spending instead of heaping on more taxes, but any such move would meet intense resistance from Labour MPs.OECD Downgrades Growth ForecastsThe OECD has downgraded growth forecasts for next year and cautioned that inflation is likely to stay stubbornly high as the Middle East crisis drags on. The bleak outlook adds pressure on the Chancellor as he prepares his fiscal package.Ms Georgieva suggested there was fairly consistent action on lowering debt, but warned governments do not have the cash to boost growth and must encourage the private sector to invest.She said the UK's position was not very different from other major states, despite nervous investors driving up interest rates on borrowing. The intervention comes as Chancellor John Healey grapples with an increasingly bleak outlook for his fiscal package on October 28.Pressure Mounts on Chancellor HealeyAndy Burnham has been given a stark warning over spiralling debt and the burden on businesses ahead of the Budget. The IMF chief said governments were failing to take tough decisions needed to stabilise their books.The public sector borrowed £18.3billion last month, up around a fifth on August 2025, as rising tax revenues failed to keep pace with Labour's spending. That was around £3billion more than expected, and £3.5billion more than the OBR predicted.Some £8.8billion went on interest payments for the debt mountain, which was hovering just below £3trillion. The Tories have been urging Mr Healey to curb benefits spending instead of heaping on more taxes, but any such move would meet intense resistance from Labour MPs.Economists warned the walls are closing in on Mr Healey yesterday as figures showed government borrowing surging. The OECD has downgraded growth forecasts for next year and cautioned that inflation is likely to stay stubbornly high as the Middle East crisis drags on.