Andy Burnham has confirmed he will run for Prime Minister to replace Sir Keir Starmer, who announced his departure earlier today. The former Greater Manchester Mayor arrived in London this afternoon after winning the Makerfield by-election. In a post on X, Burnham said: "As we move forward, our priority must be to work together to get the country back to where we all want it to be. People want to see progress on economic growth, cost of living, public services, housing and opportunities for the next generation."
Potential Tax Changes Under Burnham
Burnham has hinted at revisiting the income tax personal allowance, currently frozen until April 2031. The personal allowance is £12,570 a year for most people. He has also suggested there is "definitely a case" to reintroduce the 50p top rate of income tax, though he did not specify if that would be under his premiership. Currently, a 45p rate applies to earnings above £125,140. Analysts anticipate possible changes to council tax, inheritance tax, and stamp duty if he becomes PM.
State Pension Commitment
Burnham has committed to keeping the state pension triple lock, which determines annual increases based on the highest of earnings growth, inflation, or 2.5%. He told the i Paper that scrapping this manifesto commitment would be a "very damaging thing to do." He has also expressed support for WASPI women affected by state pension age changes but stopped short of backing cash payouts, instead suggesting non-cash benefits. Ministers have rejected compensation, which would cost an estimated £10.5 billion.
Benefits and Defence Spending
Last week, Burnham said he would cut the benefits bill to boost defence spending. He told the i Paper this could be achieved without "crude cuts" by "rethinking the education system" to get young people into work.
Investments and Public Control
Burnham has indicated stronger public control over key services like energy, transport, and water, which could affect investors in those sectors. Dan Coatsworth, head of markets for AJ Bell, noted that the choice of Chancellor under Burnham would be crucial: "Burnham’s choice of Chancellor if he becomes Prime Minister could have a major impact on bond markets. Bond investors like boring and dull – they want someone who has a plan where the maths stacks up and they stick to it."
