Andy Burnham, the man widely expected to become prime minister later this month, has hinted at a tax shake-up — but insisted he will not break Labour’s core manifesto promises.
In an interview with LBC’s Andrew Marr, Burnham said there was “some room” for movement on tax, suggesting business rates on giant warehouses could be increased to fund cuts for pubs and high-street businesses. Pubs, clubs and music venues would receive a 20% cut, while smaller independent hospitality, leisure and retail companies would have the threshold for paying business rates raised for the first time since 2017. The higher levies would target warehouses operated by online firms such as Amazon and the owners of empty high-street properties.
“Andy Burnham signals tax movement but vows to keep Labour's pledges not to raise VAT, income tax or national insurance.”
But the newly elected Makerfield MP was quick to draw a line. “I stick by the manifesto and the promises that it made,” he said. “So, let me be absolutely clear about that, but there is some room within that manifesto for movement on tax.”
The pledges he referred to — not to raise VAT, income tax or national insurance — were made in Labour’s 2024 general election manifesto. Burnham also defended his economic credibility, insisting he would not be “indisciplined” with the public finances if he becomes PM.
The interview was Burnham’s first media appearance since announcing his bid to become prime minister. Later on Friday, he is hosting an “ask me anything” session on Reddit. Conservative leader Kemi Badenoch accused him of “running away from being asked questions”, saying: “Reddit is easy, he can filter which ones he wants to answer, just look at the easy questions.”
Burnham remains the only candidate in the process to replace Sir Keir Starmer as Labour leader and is expected to take over as prime minister on 20 July. One of the biggest items in his in-tray will be how to fund an increase in defence spending. Sir Keir announced plans this week for a £15bn increase — but did not spell out in full where the extra money was coming from. That means whoever Burnham chooses to replace Rachel Reeves as chancellor will have to find at least £4.7bn in savings from other departments.