Prime Minister Andy Burnham has indicated that the £12,570 income tax personal allowance could rise in the upcoming Budget, following confusion over the government's position. Just hours after taking office, Burnham appeared to row back on earlier comments, stating there was no commitment but that the move would be considered.
Burnham's Doorstep Concerns
Burnham, who became Prime Minister after winning the Makerfield by-election, stressed that the freeze on the personal allowance was "the thing I heard the most on the doorsteps" during the campaign. He said the issue was "lodged in my mind," highlighting the financial strain on low-income households.
The allowance has been frozen at £12,570 since 2022, a policy that has drawn criticism for dragging more people into paying income tax as wages rise. Burnham's initial comments raised hopes of a change, but he later clarified: "There is no commitment at this point to change, but we will look at that at the Budget."
Honest Politics or Mixed Messages?
Speaking during a visit to Bath, Burnham defended his approach, saying he was trying to answer questions "honestly" in a more open style of politics. "It's funny these days you can't answer a question honestly without then people reading everything else into it," he told broadcasters. "I want to answer questions honestly in this job, as I said before. I think that's all about trust in politics and doing politics differently."
However, Labour officials expressed concern that Burnham's candidness could create confusion. One Labour official said: "Andy appears to have just realised he is the prime minister. He is a talented communicator and he is right that the media spins messages and this can be a hostile environment. But it is his job to go into that with his eyes wide open."
Political Scrutiny and Priorities
Sean Kemp, a partner at Hanbury Strategy and former adviser to Liberal Democrat leader Nick Clegg, offered a different perspective: "He's not an idiot. He knows what he's doing, but he doesn't care, and he's going to keep on saying it. And he's done it so much now, I'm starting to think now that he's decided this is just how he does things."
Burnham acknowledged the financial constraints facing the government, noting: "So all of this will be looked at though at the Budget, and obviously it's difficult given the financial circumstances in which we find ourselves. But I wanted to recognise the point because it's challenging for people and it's people on the lowest incomes perhaps who've most been affected by that."
Budget Decision Looms
The final decision on the personal allowance will be made at the Budget, with Burnham emphasising that no promises have been made. The move would provide a tax cut for millions of workers, but the government must balance this against other spending priorities and the state of public finances.
