Will Andy Burnham raise taxes? What we know about his proposals for income, business and wealth tax

As Andy Burnham’s path to No 10 continues unchallenged, the former mayor of Manchester shed light on some of his economic policies.

In an interview on Thursday evening, Mr Burnham set out how he might approach taxation once in power, suggesting there was “some room” for “action on tax” in the Labor Party manifesto.

The Makerfield MP has signaled he could consider increasing business rates at giant warehouses while eliminating high street shops and pubs from having to pay business rates.

But he also told LBC’s Andrew Marr that Labor plans to stick to promises in its 2024 election manifesto not to increase income tax, VAT or national insurance personal contributions.

Here’s a look at what Andy Burnham’s tax plans could be at number 10.

Income tax

One area Andy Burnham could look to raise money would be to raise income taxes.

But this would break one of Labour’s key manifesto commitments, which pledged not to increase taxes on working people, including national insurance, basic, higher or additional income tax rates, or VAT.

On Thursday Mr Burnham ruled out breaching Labor’s manifesto commitments on taxes, saying: “I remain committed to the manifesto and the promises it made. So let me be absolutely clear about that.”

Business rates

Mr Burnham said there was “some room” for “action on tax” in the manifesto, with particular reference to business rates.

He has signaled he will introduce a so-called “Amazon tax” along with a major reform of business rates in a bid to save Britain’s high streets and pubs.

“There is some room in this manifesto for action on tax, so if we take business rates for example, I believe there is a case for higher business rates in warehouses and the big developments we are seeing on the outskirts of our cities so we can reduce business rates for pubs and I have also proposed a 20 per cent cut and excluding some high street businesses from business rates altogether,” he said.

“I think it’s important to prioritize and reward businesses that do social good, businesses that bring people together, bars, restaurants, coffee shops, hairdressers, because the high street really needs to get more of our attention.”

wealth tax

While calls for a wealth tax have increased from left-wing Labor MPs, a poll conducted earlier this year found that 91 per cent of party members think the government should tax the rich more.

One way to do this would be to increase capital gains tax (CGT), which one of Mr Burnham’s key allies has called for in recent days.

Louise Haigh, who supports a “fundamental redesign” of the tax system, said CGT, the tax on profits from the sale of an asset that has increased in value, “should be brought closer to income tax rates”.

The proposal would mean CGT could be taxed at a rate of 45 per cent, rather than the current rate of 18 to 24 per cent.

But the idea of ​​a wealth tax has proven divisive among economic experts, with ongoing debates over its fairness, revenue-raising potential and economic impact.

Other taxes

Andy Burnham has also previously suggested that council tax and stamp duty could be changed and advocated for land value tax instead.

This may see the property taxed at its market rental value.

In 2023, Mr Burnham also backed the abolition of inheritance tax in favor of a “national care tax” where everyone would pay to contribute to the national care service, but said “obviously the richest will pay the most”.