Prime Minister Andy Burnham has signalled that the 50p income tax rate could return, admitting he is “looking at” raising the frozen personal tax allowance. In his first press conference since taking office on Monday, Burnham failed to deny twice that he would reintroduce the top rate to fund such a move.
Burnham's Comments on Tax Policy
Asked directly whether he would look at reintroducing the 50p rate, Burnham replied: “I think that’d be just premature to say that. I’ve barely got my feet under.” The 50p additional rate was introduced under the previous Labour government in 2010, before being cut to 45p by the Conservative-Liberal Democrat coalition in 2013.
If reintroduced, people earning above a specific high-income threshold would pay 50p in tax on every extra £1 they earn over that level. Burnham emphasised: “None of this is about taking risks with the economy. I’ve never done that in any role that I’ve had. I’ve always taken a very prudent approach.”
Cost of Living and New Appointments
In his speech outside No 10, Burnham said the government would announce “some breathing space” on Tuesday for people on the cost of living, with plans to cut energy bills and bus fares expected as part of a fully funded package. He launched his premiership with the surprise appointment of John Healey as chancellor.
Speaking without notes, and watched by his wife, Marie-France van Heel, Burnham stated: “I am acutely conscious that I am the sixth person in the last 10 years to walk up this street, the seventh prime minister since 2016, making this a moment for reflection and new resolution. It requires my generation of politicians to raise our game and rise to the new challenge. Britain needs to show the world that we can regain our stability once again, and that is our challenge to make politics work, to make it work better. I know people at home are fed up with politics. I hear you, and I want to be honest with you. We have not been good enough, and we need to be better. We will be.”
