Andy Burnham has hinted that he could raise the tax-free personal allowance amid concerns over the cost of living. The incoming prime minister said the fact that the personal allowance had been frozen at £12,570 for five years was “the thing I heard the most on the doorsteps” when campaigning in the Makerfield by-election.
Burnham Cites Doorstep Concerns
Mr Burnham added that the issue is “lodged in my mind” since the contest. He told The Times: “So when people, they’re just characterising me as a tax raiser, well again it’s never that simplistic, is it? The breathing space point is a really serious one. How do we just make people feel better?”
The personal allowance has been kept at £12,570 since April 2021. The stealth tax was originally due to be lifted in 2027, but was extended to 2031.
Talks with Treasury Ahead of First Speech
The Makerfield MP said he has been in talks with the Treasury over the weekend about planned announcements he will make at 10 Downing Street today. Mr Burnham will promise to give people “breathing room” against the rising cost of living in his first speech as PM.
Reports have suggested that support could include action on energy bills, including allowing more oil and gas drilling in the North Sea.
Tory Leader Warns Against Tax Rises
But Tory leader Kemi Badenoch has warned that Mr Burnham is entering No 10 without a plan for government or a mandate for tax rises. She hit out at Sir Keir Starmer’s successor for admitting last week that he may have “to ask for a little more” tax.
Writing in the Daily Express, she said: “Labour has no mandate at all to put up taxes even further.” Mrs Badenoch warned that even the threat of a tax rise could damage the economy. Mr Burnham should instead find cash to help struggling families by cutting the UK’s soaring benefits bill, she said.
