Andy Burnham has confirmed his plans for new HMRC income tax bands if he becomes Prime Minister, following Sir Keir Starmer's resignation. In an interview with The Telegraph in September, Burnham said there was “definitely a case” to increase the additional rate of income tax to 50p, up from the current 45p. He also urged Rachel Reeves to cut taxes at the opposite end of the spectrum by introducing a 10p band for the lowest-paid workers; currently 20p is charged on incomes between £12,571 and £50,270.
Burnham's Tax Proposals
Burnham, who is set to become the next Prime Minister after Starmer resigned outside Number 10 Downing Street on Monday, outlined his vision for a fairer tax system. The proposed changes would see the additional rate rise to 50p, while a new 10p band would benefit low-income earners. The current basic rate of 20p applies to incomes between £12,571 and £50,270.
Reaction to Starmer's Resignation
Tributes have been paid to Sir Keir Starmer throughout Monday after his decision to step down. Birmingham MP Shabana Mahmood, the home secretary, said: "Keir Starmer led our party from the brink, back to power. He won a landslide victory, which few in our party’s history have done before. That achievement will never be forgotten. In office, he put us on the path to the change we promised at the last election. A devoted and dedicated public servant, we owe him our deepest thanks."
Yvette Cooper, the foreign secretary, said: "Keir Starmer led the Labour Party from one of our worst defeats in history in 2019 to one of our most decisive election victories five years later. All the things this Labour Government has done and will do in the future to build a fairer, stronger country are only possible because of what Keir has done over the last six years."
Angela Rayner, the former deputy PM, said: "I know just how hard it is to both hold and leave office, not just on those who held it but all those close to them too, as Keir rightly acknowledged today. He spoke with dignity and duty, and my thoughts are with him and his family. I was proud to serve as Deputy as he led our party into government. History will remember not just the challenges he faced but the achievements he oversaw."
Timeline for Change
Burnham could become PM as early as July, with all eyes turning to what his premiership could mean for people's money. The proposed tax changes are expected to be a central part of his economic policy, aiming to redistribute wealth and support lower-income households.
