Burnham says there is some room for movement on tax
But the likely next PM says he will stick to Labour's pledges to not raise VAT, income tax or national insurance.
By BBC News
Burnham says there is some room for movement on tax, but the likely next Prime Minister confirms he will stick to Labour’s pledges not to raise VAT, income tax or national insurance. The former Greater Manchester mayor, who could become Prime Minister as soon as mid-July, pledged to follow the economic rules set by Chancellor Rachel Reeves and said he would not allow a significant increase in borrowing.
He reaffirmed Labour’s commitment to its manifesto, promising not to raise the main rates of income tax, VAT or National Insurance, which limits his ability to generate large amounts of tax revenue. However, Burnham said he wants to reform how business, property and land are taxed.
He has consistently supported a land value tax, an annual levy based only on land value and not on buildings or improvements. During his campaign launch, he also called for the largest council house building programme since the Second World War, proposing to fund it by reallocating the existing £39 billion affordable housing programme entirely to social rent homes.
In a by-election campaign, his team circulated a policy document promising a 20% cut in business rates for pubs and music venues, funded by higher taxes on out-of-town warehouses used by online retailers like Amazon. He also wants to raise the threshold for business rates to exempt many small high street shops from paying altogether.
Burnham has also said he wants to re-evaluate the increase in National Insurance contributions imposed on employers by Rachel Reeves in the 2024 Budget. He has advocated for a new drive to re-industrialise the north of England and beyond, and in an interview with iNews he expressed ambition to reinstate the northern leg of HS2 connecting Birmingham and Manchester.
On BBC Newsnight, Burnham indicated he wants to make more decisions about spending and infrastructure at the local level, including choices about railways, roads and other projects, while also supporting fiscal devolution.