Tax Experts Warn Households to Prepare for Potential Policy Shifts Under Burnham
As Andy Burnham is widely expected to become the next Prime Minister of the United Kingdom, tax experts are urging households to review their financial plans ahead of possible changes to tax and property policies. The Labour MP for Makerfield, who is set to take over from Sir Keir Starmer as Labour leader, has outlined ambitious plans to devolve power to the north of England and overhaul essential services.
In a campaign speech on Monday, Burnham promised the “biggest council house building programme since the post war period” and greater public control of water, energy, and transport. He also hinted at potential changes to the tax system, including a land value tax and adjustments to capital gains tax.
Rathbones Issues Three-Step Advice for Households
Wealth management firm Rathbones has issued guidance to help households prepare for potential policy shifts. Rebecca Williams, Financial Planning Divisional Lead at Rathbones, said: “There’s no need to make immediate changes based on potential policy shifts alone. However, it’s sensible to review your plans so you’re well positioned if reforms are introduced in the future.”
Rathbones recommends three key actions:
- Sense-check your tax efficiency: Review how much wealth is in tax-efficient wrappers like ISAs and pensions. Ensure you are making full use of available allowances and consider how changes to income tax or capital gains tax could affect you.
- Review your property and estate strategy: Consider how changes to property taxes or inheritance tax could affect long-term plans. Revisit how property is owned, particularly higher-value or second homes, and check that estate planning reflects your wishes for passing on wealth.
- Speak to your adviser before making changes: Discuss how potential reforms could affect your personal situation. Avoid making decisions based on speculation alone and focus on long-term planning rather than trying to time policy changes.
Burnham’s Vision: A Radical Rebalancing of Power
Burnham has promised the “biggest rebalancing of power our country has seen” and vowed to overcome Whitehall’s resistance to devolution. “Let me say this very directly: the days of Whitehall fighting the devolution of power into the regions and nations are over for good,” he said. To reassure markets, he pledged that his measures would be based on “the stability that comes from sound public finances” and “the discipline of our current fiscal rules.”
With Burnham’s premiership looming, households are advised to take proactive steps to safeguard their finances against potential tax reforms, including a land value tax or increased capital gains tax.
