Andy Burnham, the prime minister-in-waiting, has declined to rule out introducing a wealth tax, warning that his incoming government will face “difficult” choices and “might have to ask for a little more” from taxpayers. In an interview with former footballer Gary Lineker, the Labour MP said he would take time to review the public finances and wanted to focus on “bringing people together” 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.”
The Makerfield MP, who is due to become prime minister on Monday after securing the backing of 349 Labour MPs and several trade unions, has already committed to Labour’s 2024 manifesto pledges not to raise income tax, VAT or national insurance. That narrows his options for raising revenue. One proposal backed by Oxfam and Tax Justice UK is a 2% levy on assets over £10m; the Green Party backs a 1% annual tax on assets above £10m and 2% on assets above £1bn. Burnham has suggested increasing business rates on warehouses to fund tax cuts for pubs and some high-street businesses, a measure he has called an “Amazon tax”.
“Andy Burnham refuses to rule out a wealth tax, warning of 'difficult' choices and hinting at asking for 'a little more' tax.”
The prospect of new taxes drew immediate fire from opponents. Reform UK’s Treasury spokesman Robert Jenrick wrote on X that Burnham had admitted “people will have to pay more in tax” and should rule out “the ten taxes – £3,450 for every family – he’s previously supported but has no mandate for”. Conservative leader Kemi Badenoch said Burnham was “already talking about raising your taxes again”, warning of “another summer of chaos with Labour obsessing about who they can tax to pay for more benefits”.
Beyond tax, Burnham has outlined a bold agenda focused on devolution. In his first major speech after returning to parliament, he promised a decade-long plan to transfer power out of Whitehall, giving regions control over utilities, transport and housing. His flagship proposal is a “No 10 in the North” – an outpost of Downing Street in Manchester that would serve as the “nerve centre” for reindustrialisation and regeneration. He said it would bring about the “biggest rebalancing of power our country has seen”.
Burnham will become Labour leader on Friday and is expected to set out a vision to undo Thatcher’s economic policies. His cabinet is due to be announced on Monday, with Home Secretary Shabana Mahmood the frontrunner to become chancellor. A senior Labour source told The i Paper that Mahmood is “prepared to move wherever helpful”, hinting at a shift to the Treasury. As chancellor, she would potentially have to deliver the introduction of capital gains and wealth taxes – a test of how far Burnham’s “little more” will go.
