Prime Minister Andy Burnham is struggling to recruit a key ally to his Government over wealth tax fears, according to reports. Lord O’Neill of Gatley, an economist and former Treasury minister, is said to have been offered ministerial and advisory roles but has not yet reached an agreement with the Prime Minister.
Concerns over wealth taxes
A Whitehall source told The Times that the peer had concerns about potential wealth taxes, which have been backed by other close allies of Mr Burnham. He previously said he was “very opposed” to wealth taxes because they could be “easily gamed” and did not raise a significant amount of money.
Lord O’Neill is also said to be concerned about putting his business interests into a blind trust.
Another key appointment uncertain
Mr Burnham is also reportedly yet to secure the appointment of former Bank of England chief economist Andy Haldane. Mr Haldane was expected to join him in No 10 but is said to have been providing advice informally.
It is a blow for Mr Burnham as the appointments were seen as key to reassuring the markets before he entered 10 Downing Street.
Budget and tax policy
Chancellor John Healey is set to deliver his first Budget on October 28 and has promised the plans would be “built on fiscal discipline”.
A Treasury minister last month declined to say whether Mr Burnham would bring in a wealth tax after calls for a group of millionaires including football pundit Gary Lineker to pay more. Chief Secretary to the Treasury Emma Reynolds welcomed the offer, but said any announcement on tax policy would be made in the Budget.
