Andy Burnham is facing mounting pressure over the cost of his spending pledges, with the Conservatives claiming his plans would hit families with a £4,300-a-year tax rise, as he prepares to unveil a long-promised social care overhaul next week.
The new prime minister, who took office on Monday, has already announced a series of mini pledges including cutting VAT on energy bills and capping bus fares at £2. But the Tories say the total bill runs to £96bn, prompting chairman Kevin Hollinrake to ask: “Where’s the money coming from, Andy? We’re all dying to know.”
“Andy Burnham faces Tory claims of £96bn tax raid as he prepares to unveil social care plan next week.”
Burnham is due to make a major speech on social care in the coming days, vowing to make it free at the point of use on the same principle as the NHS. It is an issue he first tried to fix in 2009 when, as health secretary, he sought cross-party support for a levy. The Tories then accused him of inventing a “death tax”.
Now, Downing Street sources say the prime minister “has the courage to fix the most difficult issues that have been ignored for years”. A No 10 source said: “Andy is going to run towards problems that have been neglected, giving people hope again.”
Burnham has suggested the system could be funded by a 10% levy on assets, savings and homes, payable from age 65. However, the plan is unlikely to cover daily living costs in care homes, meaning residents could still face hefty bills. Currently, people with savings above £23,250 receive no help from their local council.
The prime minister has also paused a controversial early prison release scheme that would have let some offenders out after serving a third of their sentence. The decision followed criticism from the widow of PC Andrew Harper, who was killed in 2019. Lissie Harper called the plans “deplorable”. Burnham said: “No prisoners will be let out … until we have conducted an urgent review.”
On Thursday, Burnham returned to Manchester to launch “No 10 North”, which he described as the “nerve centre for a rewired Britain”, calling it “the best day of my life”. The office is intended to symbolise his commitment to devolution, one of three areas he will address alongside social care and youth unemployment.
But the question of how to pay for his ambitions remains unanswered. Liberal Democrat leader Sir Ed Davey urged cross-party consensus, and Burnham replied: “It most certainly is, Ed. Let’s work together to find some common ground.” With the Tories already branding the plans a “tax bombshell”, the new prime minister faces an early test of his promise to make government “make people’s lives better”.