Andy Burnham plots Budget from hell – here’s how he’ll hike your taxes | Personal Finance | Finance
We are less than three weeks away from the Makerfield by-election on Thursday 18 June. If Burnham gets into parliament, it won’t be long before she replaces Keir Starmer as Prime Minister. That would give him plenty of time to choose his chancellor and prepare his autumn budget. Exciting times for him. This situation is turning into a new nightmare for taxpayers. We’ve already endured two disastrous budgets from Chancellor Rachel Reeves. It has so far hit Britain with £66 billion in extra taxes, £32 billion in increased spending and £140 billion in borrowing. Incredibly, Burnham doesn’t think she’s gone far enough.
Like much of Labour, he acts as if governments could tax, spend and borrow without consequences. No wonder gilt yields are rising and sterling falling at the thought of him being Prime Minister. So where will the tax threshold reach? Ahead of the 2024 general election, Starmer and Reeves ruled out increases in the “big three” taxes of income tax, VAT and National Insurance. Reeves, of course, broke that promise twice. The first is a £26 billion increase in employer National Insurance, and the second is an extension of the income tax threshold freeze until 2031. Both ultimately affect working people.
Incredibly, Burnham repeats the same big three promises. Does he think we’re stupid? Actually it doesn’t matter. We cannot vote.
He also contradicts himself, saying there is “absolutely a case” for increasing the additional income tax rate from 45% to 50%. The penalty for ambition, success and hard work is even greater. But the real big raid would come somewhere else.
Burnham repeatedly argues that Britain “overtaxes labor and undertaxes wealth.” In practice, this means they will go after our homes, savings, assets and inheritances. He backed higher council taxes on expensive properties that would put homeowners in London and the South East in a difficult position.
After describing land in Britain as “undertaxed”, he argued for replacing council tax entirely with some form of land value tax. No one knows exactly how this will work yet, but it could cost us a staggering £35bn. Burnham also supported broader property taxes linked to land or rental values. He also backed a new type of inheritance tax that would introduce an additional 10% death tax to fund social care. Another tax extortion disguised as reform.
Leadership rival Wes Streeting has introduced a wealth tax and Burnham may be tempted to do so. Even though they are extremely complex to govern and will erode our tax base by moving more British wealth abroad. There may be other tax increases as the budget approaches.
Businesses can’t escape either. Today they struggle with high taxes and skyrocketing costs. Burnham would further increase their burden with more taxes and regulations. So where will all this money go?
Towards a larger welfare state, higher public spending and nationalisation. All of these destroy rather than create wealth. The IMF has just warned that we cannot continue to see tax increases hurt growth, investment, jobs and ambition. Burnham will do it anyway. Because that’s what Labor MPs, activists and unions are demanding. So are Burnham’s supporters Angela Rayner and Ed Miliband. Only voters in Makerfield can save us. If Burnham wins, taxpayers will be the losers.
