Leaked documents suggest Andy Burnham's government could reduce taxes for workers earning more than £100,000 a year, targeting the so-called 60 per cent "tax trap" that penalises high earners. The plans, obtained by Sky News, show the Prime Minister has borrowed extensively from Sir Keir Starmer's agenda as he seeks to consolidate power.
The documents, marked "official sensitive," outline proposals considered for the Autumn Budget, including measures to lower the tax burden on those earning above £100,000. Workers in this bracket currently face a marginal rate of 60 per cent due to the withdrawal of the personal allowance, a situation the strategy paper says needs "careful political handling."
Leaked Strategy Documents Reveal Tax Proposals
The strategy document explicitly calls for "action to address high marginal tax rates that reduce incentives to work/earn more," alongside "reforms to capital and property taxes." These could include changes to stamp duty, council tax, or the introduction of a new mansion tax, according to the leaked materials.
One slide from a presentation prepared for a ministerial away day at Chequers, the prime ministerial country retreat, urges the government to "make changes" and "move from the politics of faction to the politics of project." It adds: "[We] need to move from a politics of avoiding risk to a politics of ambitious optimism. Politics fit for the scale of the challenges."
Political Reactions to the Leak
Former Labour political adviser John McTernan described the leak as "the last of knockings of Sir Keir Starmer's allies," suggesting internal turmoil within the previous administration. Green deputy leader Rachel Millward challenged Burnham to "prove" he is not running a continuity government, while Conservative shadow minister Saqib Bhatti said the documents demonstrate that Burnham "is the 'copy and paste' prime minister."
Sky's analysis of the leaked ideas found that of 50 proposals studied, 20 were announced by Starmer before his departure in July. Six have already been announced by Burnham, with a further eight expected to be unveiled in the coming weeks.
Impact on Taxpayers and Government Agenda
If implemented, the tax cuts for high earners would directly address the 60 per cent marginal rate, which arises when the personal allowance is tapered away for incomes between £100,000 and £125,140. The reforms to capital and property taxes could reshape the fiscal landscape, potentially affecting homeowners, investors, and the property market.
The leaked documents also signal a broader strategic shift, with calls for a more ambitious political approach. The government has yet to officially confirm which measures will proceed, but the leaked materials indicate that announcements are imminent, with eight policies expected to be revealed in the near term. The final decisions will depend on political calculations and budgetary constraints.
