Andy Burnham, the newly elected MP for Makerfield and frontrunner to replace Keir Starmer as Labour leader, has stated he would 'tread carefully' on raising taxes if he becomes Prime Minister. Speaking to The Times, Burnham criticised Chancellor Rachel Reeves's decision to increase employers' National Insurance, calling it 'problematic' and suggesting Labour had not 'got that balance right' between a pro-growth and fairness agenda.
Tax Pledges Under Scrutiny
Last week, Burnham did not rule out raising taxes but emphasised caution. 'I tread carefully because I’ve heard very much from people in this campaign that the tax decisions in the 2024 manifesto have been problematic in terms of employer’s national insurance,' he told The Times. 'That is a recurrent theme. So I’m not going to write that type of manifesto policy now, but I think decisions on tax going forward are going to need to be thought through extremely carefully.'
Defence Spending and Welfare Cuts
Burnham also outlined plans to redirect welfare spending to defence, following the resignations of Defence Secretary John Healey and Armed Forces Minister Al Carns. 'I am not squeamish about saying that the plan would be to reduce the welfare bill,' he said. He advocated a ten-year approach to defence and security, with public procurement tied to 'social value' commitments such as apprenticeships and support for British industry. 'If you have a very ambitious defence investment plan you can also apply very strong social value weighting so you maximise apprenticeships, you maximise support for British industry and British jobs. So you unlock from existing spending the maximum social return,' he added.
Leadership Contest Underway
Starmer announced his resignation as Prime Minister and Labour leader on Monday, triggering a leadership contest. Burnham, who was mobbed by crowds at Manchester Piccadilly station as he travelled to Westminster, is considered the favourite. Other potential candidates include Angela Rayner and Yvette Cooper, as MPs, unions, and party members debate Labour's future direction.
