Andy Burnham has U-turned on plans to increase the tax-free personal allowance days after hitting out at the move. The new Prime Minister signalled that he could raise the £12,570 threshold, which has been frozen since 2021, in what is a huge stealth tax.
Burnham's earlier signals
In an interview over the weekend, he said the issue was "lodged in my mind" as it was “the thing I heard the most on the doorsteps” when campaigning in the Makerfield by-election. After entering 10 Downing Street on Monday, he said "all of this will be looked at" in the next Budget but admitted any changes would be "difficult given the financial circumstances in which we find ourselves".
Allies clarify position
But allies have now said the move is not part of his initial plan to tackle the cost of living. One told the Financial Times: “There is not any commitment to do it. What he was saying is that people are feeling unheard.” Another source added that Mr Burnham had looked at making an announcement on increasing the allowance, but backtracked because of the cost.
Political reaction
Tory frontbencher Sir James Cleverly said: "Burnham has been PM for one day and Mr Flip-Flop has already Flip-Flopped. This is going to be a bumpy ride!"
Other cost-of-living measures
It comes as Mr Burnham has announced VAT will be removed from electricity bills and bus fares will be capped at £2 in a bid to ease cost-of-living pressures.
