Andy Burnham, poised to become the next prime minister, has indicated that his government may need to increase taxes, stating he will not rule out the possibility of asking for "a little more" at some point. In an interview, Burnham suggested that reviewing the state of public finances would be a priority, emphasizing a focus on unity rather than creating "new divisions."
"I'm not going rule things out right now," Burnham said. "I do believe we need a greater sense of fairness." He acknowledged that "decisions to be taken in time" would be difficult and that his administration would "have to work quite hard to make sure, you know, we can pay our way."
Burnham has not detailed specific tax policies since announcing his intention to seek the Labour leadership and prime ministership. However, he has previously suggested potential increases to business rates on warehouses to fund tax reductions for pubs and certain high-street businesses. He has also committed to upholding Labour's 2024 general election manifesto pledges not to raise VAT, income tax, or national insurance.
With limited options outside these existing commitments, some within the Labour party, economists, and campaigners have proposed a wealth tax. Proposals include a 2% levy on assets exceeding £10 million, a policy supported by organizations such as Oxfam and Tax Justice UK. The Green Party also advocates for a wealth tax, proposing 1% annually on assets over £10 million and 2% on assets above £1 billion.
Opposition figures have reacted to Burnham's remarks. Robert Jenrick, Reform UK's Treasury spokesman, stated that Burnham's comments imply higher taxes for individuals. Conservative leader Kemi Badenoch criticized Burnham for discussing tax increases before even assuming office, suggesting a Labour focus on identifying groups to tax to fund benefits.