Prime Minister Andy Burnham promises help with your money. How could it affect you?
He will stick to Labour’s manifesto to not increase the three main taxes – income tax, National Insurance and VAT. But since the election we have already seen that other taxes, such as inheritance tax changes affecting family farms, can be changed and often provoke a vociferous backlash.
Possibilities include:
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Replacing stamp duty and council tax with alternative property tax
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Higher rates of capital gains tax you pay on profits when selling assets such as properties other than the main house and some shares to bring them into line with income tax rates
Such reforms will take time and bring both winners and losers. When Reeves and Starmer tried to make major changes, even with a large majority, this was followed by numerous U-turns, often forced by their own party.
Burnham and her chancellor are also expected to adhere to the government’s own set of fiscal rules and a set of preferences regarding the government’s tax and spending decisions.
There is disagreement as to whether these are logical building blocks for the economy that allow living standards to improve, or a “dysfunctional” economic straitjacket.
” [resulting] Digging behind the sofa for loose change has hit personal finances hard, changed the tax landscape and made it more difficult for people to save for their future,” says Rachel Vahey, head of public policy at investment platform AJ Bell.
