It does not have to be inflationary but if it isn’t inflationary then it does not help raise more people out of poverty. If it does not increase spending by the poor (which causes inflation) then there is no significant reduction in poverty. If it was funded by cuts to government spending like on the military or R & D or farm subsidies or such then it might not be inflationary since those cuts would reduce consumption by the middle and upper classes to offset increased consumption by the poor.
In a country like Great Britain that already has a VAT, how would you fund a UBI? Raise the VAT, isn’t the VAT already unpopular?