Andy Burnham is reportedly planning a wealth tax raid on two assets—shares and second homes—if he becomes Prime Minister. The Greater Manchester Mayor, widely anticipated to succeed Sir Keir Starmer, is considering increasing capital gains tax rates, currently capped at 24%, to align more closely with the 40% higher rate of income tax.
Political Context and Concerns
Labour Party MPs are reportedly anxious about Burnham's left-wing drive, which they fear could alienate southern voters. One MP told the Daily Mail: "We've got to have a winning coalition that spreads across the country. It's not just the Red Wall. It's seats we'd never won before from the Tories. It's metropolitan areas being snapped up by the Greens."
Another MP added: "Andy has to be able to prove that his Northern focus won't cloud his ability to govern for all corners of the UK. What does he have to say about the rural poverty and lack of transport in Cornwall? What about the chronic health issues which are endemic in many of our coastal communities—areas which are leaning towards Reform?"
Policy Rollout and Starmer's Departure
Burnham is expected to begin outlining his policies next week with a series of speeches, starting with the economy and devolution, marking a symbolic shift from Starmer's government. This follows Starmer's decision, after a weekend at Chequers with his family, to set a timeline for his departure on Monday.
Labour MP supporters have urged Burnham to launch a "shock and awe" policy blitz to demonstrate change. One commented: "The next general election will be won or lost in the first 100 days—it's very difficult to change people's views after that."
Impact and Next Steps
The proposed wealth tax targets two key assets: shares and second homes, which could generate significant revenue for Burnham's northern-focused agenda. However, critics warn that higher capital gains taxes might discourage investment and exacerbate regional divides. Burnham's upcoming speeches will be closely watched for further details on his economic plans and how he intends to balance northern priorities with national governance.
