Andy Burnham has confirmed plans to raise the £12,570 tax-free personal income allowance if he becomes Prime Minister, as the new Labour MP for Makerfield outlines his policies amid speculation that Sir Keir Starmer may resign.
Speaking on the BBC's Question Time on June 4, ahead of winning the Makerfield by-election, Burnham said: “On the personal allowance, I’ve heard on so many doorsteps, and I’ve said to my team, let’s have a proper look at this and let’s develop a policy.”
Tax Policy Details
Burnham also indicated support for reintroducing a 50 per cent top rate of tax for the wealthiest, a measure originally brought in by Labour in 2010 but reduced to 45 per cent by the coalition government in 2013. The combination of a higher personal allowance and a higher top rate could shift the tax burden onto higher earners.
Expert Analysis
Sarah Coles, from investment platform AJ Bell, commented: “Promising to stick to fiscal rules means that if costs go up and you need more tax revenue, you will have put yourself in a bit of a bind and will have to tinker around the edges.” She added that businesses have been squeezed by recent policy changes, and easing that pressure could be positive for struggling firms.
Coles described Burnham as “soft left,” suggesting his policies could benefit lower-income workers. “You would think this would be a bonus for people who are on lower incomes who could look forward to someone looking out for their interests,” she said. However, she noted concerns for wealthier individuals: “But it could be a concern for those with more wealth as to what that might mean for them, and whether they’ll be sort of paying the price for the extra support. For those people in the middle, the big question is going to be where that line is drawn, and when they might start facing higher taxes.”
Political Context
Burnham's comments come as Sir Keir Starmer is expected to make an imminent decision on his future as Labour leader. The Makerfield by-election victory has boosted Burnham's profile as a potential successor. The £12,570 figure matches the current personal allowance, but Burnham's plan would effectively increase it, providing tax relief for workers.
