Prime Minister Andy Burnham has confirmed that his government will introduce three HMRC taxes for households, while maintaining a manifesto commitment not to raise income tax, national insurance, or VAT. Speaking on Wednesday, Burnham faced questions about how he plans to fund sweeping changes to social care, a reform he described as seismic.
Burnham did not rule out tax rises specifically for social care reform but insisted that current inefficiencies in the system should be addressed first. 'I think there are ways of looking at this that could include a more voluntary approach initially, or could include a roadmap to a reformed social care system,' he said.
Social Care Funding Questions
The Makerfield MP acknowledged the financial challenges facing the country. 'We are in a difficult world from a financial point of view,' he stated. He emphasised the need for cross-party consensus, noting that imposing his own views would not persuade others. 'If everybody, on the NHS principle, contributed a little, it would mean everyone could protect the majority of what they’d worked for,' Burnham added.
He referenced previous mistakes in his approach to social care, admitting that raising the issue close to a general election left no time for public debate. 'What I got wrong, as I said before, was going too close to a general election when there just wasn’t time for those issues to breathe,' he explained.
Manifesto Commitments Upheld
Burnham made clear that sticking to Labour’s manifesto was very important to him. The manifesto explicitly ruled out increases in income tax, national insurance, and VAT. However, he left the door open to other tax increases, sparking speculation about potential changes to capital gains tax, inheritance tax, or other levies.
When asked directly about the three taxes, Burnham confirmed that households would face new HMRC taxes, though details remain unspecified. He urged the media to facilitate a factual debate, saying, 'Can we not let the country look at this in a quite clear-eyed way without all of the hype and the overwriting of some of these issues?'
Cross-Party Consensus Sought
The Prime Minister called for a measured discussion, free from sensationalism. 'On this issue, please can we have a factual debate. Can we allow people to weigh up the different options that Louise might put forward, and then just come to a considered view based on those facts,' he said, referring to a likely colleague.
Burnham expressed confidence that the public would make their views known clearly. 'They’ll make it really clear what they feel they can accept and what they can’t,' he said. 'We won’t get to that point if there’s all of this stuff swirling around, and everyone frightened about everything. That just won’t get us there.'
His comments come amid ongoing discussions about social care reform, a key priority for the Labour government. The three HMRC taxes—likely to target household income or consumption—are expected to be outlined in detail in the upcoming budget. Critics argue that any new taxes could burden families, while supporters say they are necessary to fund long-term care.
