Matthew McGregor, who was appointed as Andy Burnham's strategy chief on Friday, has previously voiced support for a wealth tax on individuals with assets exceeding £10 million. McGregor stated that such a levy could generate £24 billion for the Treasury, potentially funding the National Health Service and assisting families facing financial hardship. He described the tax as a "highly popular way" to raise revenue.
McGregor's past roles include CEO of the campaign group 38 degrees and a stint on Barack Obama's 2012 U.S. presidential re-election campaign. His appointment has led to concerns that Burnham's administration might shift Labour's policies further to the left, potentially including a wealth tax.
Burnham himself has not ruled out the possibility of introducing a wealth tax. Speaking on Gary Lineker's podcast, he expressed a belief in the need for greater fairness but also stated he did not want to be perceived as targeting specific groups or creating divisions. His close ally, Liverpool City Region Mayor Steve Rotheram, had also recently suggested that a wealth tax might be under consideration, emphasizing the need to demonstrate its benefits to specific sectors or areas rather than viewing it as punitive.
In 2024, McGregor was among the signatories of an open letter to Chancellor Rachel Reeves calling for a wealth tax to address the financial impacts of climate change. The letter argued that taxing the assets of the super-rich, who are often the largest emitters, is a fair way to fund climate crisis solutions and promote equality.
Burnham is set to assume office soon and has indicated a reset of priorities, including plans to discontinue the digital ID program initiated by the previous administration. The funds allocated for the digital ID scheme are intended to be redirected towards more tangible improvements for citizens, such as addressing the cost of living crisis. The Office for Budget Responsibility had estimated the digital ID program would cost £1.8 billion over three years.
Further policy shifts have been suggested, with reports indicating Burnham may be open to approving further oil and gas drilling in the North Sea, potentially deviating from Labour's manifesto pledge against issuing new licenses. Allies suggest he could frame this as approving projects for fields where licenses have already been granted, thus not issuing new ones.
Kemi Badenoch, a Conservative leader, has criticized Burnham's approach, describing his current statements as "airy-fairy stuff" and characterizing him as a "people pleaser" rather than a decisive leader. She indicated a reluctance to grant Burnham "a blank cheque" and stressed the importance of scrutiny and tough questions.