Andy Burnham is on course to become the UK's next Prime Minister following Sir Keir Starmer's resignation. Standing outside 10 Downing Street on Monday, Sir Keir said: “I leave the biggest job in the country.” Burnham, the former Greater Manchester Mayor, is almost certain to fill the vacancy. Here are six major law and tax changes he is set to introduce.
Tax Reforms: Land Value Tax and No Major Hikes
Mr Burnham has committed to Labour's manifesto promise not to hike the main rates of income tax, VAT or National Insurance. However, one big change he is expected to consider is introducing a Land Value Tax (LVT) to replace stamp duty and council tax. Supporters of this policy say it could make homeownership more accessible to people with limited financial backing and ensure those with high levels of wealth pay more tax.
Welfare: National Care Levy to Replace Inheritance Tax
The new MP for Makerfield is a supporter of reforming social care, a stance he has held since 2006. He has suggested inheritance tax should be replaced with a "national care levy," which in 2023 he said would mean "care [that] is provided is free" and "everybody would pay, but obviously the wealthiest would pay the most."
Immigration: Further Reductions and Detention Centres
Mr Burnham believes migration “needs to fall further.” The Office for National Statistics showed net migration was 171,000 last year, its lowest since 2012 (excluding the Covid pandemic years). He has said Britain needs to make more use of immigration detention centres.
Defence: Boost Spending to 3% of GDP by 2030
At the top of the potential new Prime Minister’s in-tray will be the delayed defence investment plan, which sparked the resignation of former Defence Secretary John Healey. Mr Burnham is expected to press ahead with the existing Government's plan to boost defence spending to hit 3% of GDP by 2030. Spending is currently on course to fall short at 2.68%. On defence, Mr Burnham has said “the plan would be to reduce the welfare bill” to fund new defence investment.
Pensioners: Triple Lock Maintained, No Waspi Compensation
Mr Burnham has committed to keeping the triple lock on state pensions, which ensures the state pension rises by whichever is highest out of wage growth, inflation or 2.5%. He has also suggested older people who depend entirely on the state pension should not be charged income tax. However, he has ruled out giving compensation to 1950s-born "Waspi" women, who lost money due to changes to the state pension age. He had previously hinted he would be open to compensation but later said there could be other ways to remunerate women impacted.
Brexit: No Plans to Rejoin EU
Mr Burnham has said in the past that he wants the UK back into the EU in “his lifetime” and backed former Health Secretary Wes Streeting’s view that leaving the EU was a “catastrophic mistake.” However, he more recently stated he is “not proposing that the UK considers rejoining the EU.”
