Burnham says there is some room for movement on tax
BBC News 2026-07-03 07:40:21
Context: Andy Burnham, widely expected to become the UK's next prime minister, has indicated some flexibility on tax policy, suggesting that business rates on warehouses could be increased to fund tax cuts for pubs and high-street businesses. Burnham, the newly elected MP for Makerfield, emphasized that he would adhere to Labour's manifesto pledges not to raise VAT, income tax, or national insurance. As the anticipated successor to Sir Keir Starmer as Labour leader, Burnham faces significant challenges, including funding a planned £15bn increase in defence spending.
Key Facts
- Andy Burnham suggested increasing business rates on warehouses operated by online firms such as Amazon to fund a 20% cut in business rates for pubs, clubs, and music venues, as well as raising the threshold for smaller, independent hospitality, leisure, and retail companies to pay business rates for the first time since 2017.
- Burnham emphasized that he would stick to Labour's manifesto pledges made in 2024, which included not raising VAT, income tax, or national insurance, but indicated there is "some room" for movement on tax within the manifesto.
- As mayor of Greater Manchester, Burnham pointed to his experience in managing "rock solid" finances and his previous role as a Treasury minister in the last Labour government as evidence of his credibility on economic policy.
- Burnham faces a significant challenge in funding a planned £15bn increase in defence spending, with at least £4.7bn in savings needing to be found from other departments, and has pledged to take his responsibilities for funding the defence investment plan "extremely seriously" if he becomes prime minister.
- Burnham has not made a decision on who would be his chancellor, amid speculation he could appoint Ed Miliband to the role, and has also expressed hopes for a proposed government digital campus near Manchester Piccadilly Station to host his No 10 North office.