Andy Burnham is on track to become the next prime minister in a matter of days.
He is currently the only candidate in the Labour leadership contest to replace Sir Keir Starmer, and has been backed by 322 out of 403 Labour MPs. As of now, Burnham is expected to get the keys to No 10 on 20 July.
But questions remain over what he will actually do once he’s there – and what his premiership could mean for your finances.
Burnham has repeatedly said he will stick to Labour’s manifesto pledge not to raise income tax, national insurance or VAT.
He has also said he will follow current Chancellor Rachel Reeves’s fiscal rules, which require day-to-day spending to be covered by tax revenue and public debt to fall as a share of the economy.
But the Makerfield MP and former Greater Manchester mayor has given hints about his priorities, telling LBC earlier this month there was “some room” for movement on tax within the manifesto.
Some of these changes could come as soon as his first Budget, expected in the autumn. Others are longer-term ambitions Burnham has held for years, which may take much longer to become policy, if they ever do.
Here is what is known about each option, and how likely it is to happen.
Business rates
During his Makerfield by-election campaign, Burnham pledged a 20 per cent cut to business rates for pubs, clubs and music venues, which he says have been squeezed by rising costs since the pandemic.
He also promised a higher threshold before smaller hospitality and retail firms start paying business rates at all, the first change of its kind since 2017, which would lift many small high street shops out of the tax altogether.
He wants to pay for both changes through higher levies on warehouses run by online retailers such as Amazon, and on the owners of empty high street properties, arguing it is time to shift the burden away from struggling town centres.
Likelihood: This is the one tax change Burnham has already pledged as policy, rather than merely floated as an idea, so it’s about as close to guaranteed as anything on this list.
Income tax devolution
This would mean letting regional mayors set their own income tax rates for their area, rather than everyone in England paying the same national rate.
Jim O’Neill, a former Goldman Sachs chief economist who has been advising Burnham, told LBC that he backed the idea, but said it is something to “study” rather than do imminently.
A more modest version, where areas keep a share of the tax already raised locally without anyone’s bill changing, was already being considered by Reeves, and it may be something Burnham looks at taking on.
Likelihood: Devolution is already a core part of Burnham’s offer, having pledged the biggest “rebalancing of power” away from Whitehall in his first speech as a leadership candidate, and the current government is already making its own steps towards it. But such a significant change to income tax specifically would require planning and is unlikely in the short term.
Burnham has made devolution and helping with the cost of living key themes of his early days in power (Photo: Dan Kitwood/Getty Images)Capital gains tax
Capital gains tax is paid on the profit you make when you sell or dispose of an asset that has gone up in value, such as shares, a second home or valuable possessions.
Burnham said at his Makerfield campaign launch in June that he wants to look “in detail” at aligning the rates with income tax, an idea already backed by his ally and former transport secretary Louise Haigh.
That would mean bringing the 18 and 24 per cent rates currently paid on gains into line with income tax bands of 20, 40 or 45 per cent, leaving anyone selling shares, a second home or other assets with a significantly higher bill.
Likelihood: Such a change would prove controversial and could actually lose revenue as people hold on to their assets in the hope of a change of government. But, it would be an easy change to implement.
Personal allowance
The personal allowance is the amount you can earn before you start paying any income tax at all, currently frozen at £12,570 until 2031.
Because thresholds are not rising with inflation, the freeze causes “fiscal drag”, which means that as wages increase, more workers are pulled into paying higher bands of income tax.
Burnham has said he wants his team to “have a proper look” at raising the threshold, which would allow people to keep more of their pay before tax kicks in.
He has said he heard the case for it “on so many doorsteps” during his Makerfield by-election campaign.
Likelihood: Unfreezing the personal allowance would be a popular move and one that could be implemented in the first Budget under Burnham. He has said he wants to act immediately on the cost of living. But, it would come at a high financial cost and would involve other cuts or tax increases to fund it.
Mansion tax
The mansion tax, formally the high value council tax surcharge, is a new annual charge due to apply from 2028 on homes worth £2m or more, on top of existing council tax.
Burnham is considering lowering the threshold to £1.5m, according to the Mail on Sunday.
Modelling by the analysts Tax Policy Associates suggests this could bring around 150,000 more homes into scope and raise close to £800m a year.
Likelihood: Another quick reform for Burnham that would be popular among Labour voters But the sums it would raise are minimal – a 1p increase in the basic rate of income tax raises would be more than eight times as much.
Employer national insurance
Employer national insurance is a tax businesses pay based on their staff’s salaries, on top of the income tax and national insurance paid by employees themselves.
The rate was increased at Reeves’s first Budget in October 2024, but the decision has been unpopular due to the impact on businesses.
Burnham has said he thought the increase “wasn’t the right decision”, though he has stopped short of committing to reverse it.
He told BBC Newsnight there was “more that needs to be done to listen to the voice of small business” who have been impacted by the change.
Likelihood: Reversing this unpopular tax would help draw a line under Labour’s perceived mistakes, and emphasise the party is under new management. But, finding the £25bn to pay for it makes it difficult to implement immediately.
Council tax and stamp duty
Council tax is the annual charge paid by homeowners, still based on property valuations from 1991, while stamp duty is a one-off tax paid when buying a home.
Burnham said last year he had “long been persuaded of the argument” for replacing both with a land value tax, an annual charge based on the value of the land a property sits on, rather than the property itself.
Another option, backed by many Labour MPs, is a proportional property tax, a flat annual levy based on a home’s overall value.
But both options would be revaluing every property in the country, a task that the government has avoided for more than three decades, making it highly unlikely Burnham would consider it as a first priority.
Likelihood: There have long been calls to reform council tax, but government after government has failed to grasp the nettle due to its complexity. It seems likely that Burnham will try and finally implement reforms, but that intricacy makes it a long term project.
Inheritance tax
Inheritance tax is a 40 per cent charge on estates worth more than £325,000 when someone dies.
Burnham floated replacing it with a “care levy” to fund a National Care Service back in 2023, and told The Guardian in June that he “wouldn’t flinch” from looking at “inheritance tax and care charges” if he became prime minister.
But the Health Foundation has estimated an NHS-style universal care system could cost around £17bn in additional funding by 2035-36, while inheritance tax only raised £8.5bn last year.
That gap, plus the logistical challenge of creating a new care service, makes this pledge likely to be forgotten – at least for now.
Likelihood: Inheritance tax is one of the UK’s most controversial taxes. If Burnham can couple reform with the need to pay for a National Care Service he may be able to dampen some of the criticism. But fixing social care is a long term project.
Hence then, the article about all the taxes andy burnham could raise or cut and the likelihood was published today ( ) and is available on inews ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( All the taxes Andy Burnham could raise or cut – and the likelihood )
Also on site :
- Erasca, Inc. Sued for Securities Law Violations - Contact the DJS Law Group to Discuss Your Rights - ERAS
- The Greatest Guitarist You've Never Heard Of Turns 67 Today
- 1977 Soft Rock Classic, Written Overnight in 30 Minutes, Became a Signature Song on Iconic No. 1 Album