Image source, UK Parliament

The cost of government borrowing has risen sharply in recent months, partly reflecting concerns about inflation.

It could put pressure on Prime Minister Andy Burnham and Chancellor John Healey as the Autumn Budget approaches.

In his first speech in the House of Commons as PM, Burnham said his government's "bedrock" would be "fiscal responsibility" as it seeks to tackle the cost-of-living crisis.

But higher borrowing costs reduce the amount of headroom - or flexibility - the government has for spending on things like measures to ease the cost of living.

Jim O'Neill - a former key adviser to Burnham - said last week that the Budget would have to include either spending cuts or "some form of tax increases" in order to restore the government’s "headroom".

Defence spending is another challenge, with the government under growing pressure to reach a target of 3% of GDP by the end of the decade.

Burnham has pointed to his choice of chancellor as proof of his commitment to defence investment - Healey resigned from Keir Starmer's government in June over a defence spending row.

Image source, EPA

In the next hour, we're also expecting Chancellor John Healey to unveil a £150m fund for companies in the north of England, part of the government's wider plan to stimulate economic growth across the UK.

The government will use public investment to "unlock private investment, to support our innovation economy, and to create the new jobs their areas need", Healey will say.

The fund, drawn from money already allocated to the British Business Bank, will provide investments of between £5m and £15m to the "most innovative and fast-growing firms".

It is expected to back university spin-outs and other "ambitious businesses" across the north.

Image source, PA Media

Chancellor John Healey will deliver his first major speech on economic growth this morning.

Healey is set to give an upbeat view of the state of the UK economy ahead of next month's Budget, building on a recent uptick in consumer and business confidence.

The chancellor will talk of a "new story" of the economy not just turning a corner but being resilient, optimistic and "ready to seize the opportunities of new technologies and ideas".

It comes at a challenging time, with UK borrowing costs having surged in recent months - partly in response to inflation fears. Borrowing costs around the world have also been rising.

As he prepares to deliver his Budget on 28 October, Healey has said he is as committed to balancing the books as his predecessor, Rachel Reeves.

But higher borrowing costs could limit the amount he is able to spend on consumer-friendly measures to ease the cost of living.

You'll be able to watch the speech live at the top of the page from 09:30 BST as we bring you his top lines and analysis from our correspondents.