What does a Burnham-led government mean for your money?
BBC News 2026-07-20 12:15:20
Context: Andy Burnham, the newly appointed Prime Minister, is set to announce policies aimed at easing the cost of living pressure on individuals, with a focus on providing "breathing space" for those struggling financially. The announcements, expected to be made on Tuesday, may include measures such as adjusting energy bills, transport costs, and taxation policies. Burnham's government will face tough choices on funding these moves and managing the trade-offs that come with them.
Key Facts
- The cost of living has been a dominant issue in people's lives and politics in recent years, with many individuals unable to afford basic activities like going out or taking holidays due to financial pressure.
- Burnham has previously hinted at allowing people to earn more before paying income tax, which could involve shifting the personal allowance, currently frozen until April 2031 in England, Wales, and Northern Ireland.
- The amount of money owed to energy suppliers by customers is at a record high of £4.79bn, up 15% in a year, with debt charity Citizens Advice warning that households are left with mounting energy debts, forced to choose between heating and eating.
- Burnham's government is expected to stick to the Labour manifesto of not raising the main three taxes - income tax, National Insurance, and VAT, but may consider alternative tax reforms, such as replacing stamp duty and council tax with an alternative property tax.
- The Prime Minister has also hinted at "asking for a little bit more" in tax from some people, with possibilities including higher rates on capital gains tax, which could bring them in line with income tax rates.