Newly appointed Prime Minister Andy Burnham has indicated that the £12,570 HMRC personal tax-free allowance could be increased, as he pledged to deliver “tangible” improvements to ease the cost of living crisis. In an interview with The Times, Mr Burnham said the five-year freeze on the allowance was “the thing I heard the most on the doorsteps” during the election campaign.
Burnham’s Pledge to Ease Cost of Living
Mr Burnham, who became Labour Party Prime Minister on Monday, acknowledged the financial strain on households and promised a fresh approach to economic management. “So when people, they’re just characterising me as a tax raiser, well again it’s never that simplistic is it? The breathing space point is a really serious one. How do we just make people feel better?” he said.
He outlined a vision focused on early investment and intervention to reduce long-term public spending. “You have to rethink how we run things to get a different approach to public spending and running the economy which is much more focused on early investment, early intervention, setting people up for success and much less paying for failure,” Burnham added.
Political Reactions and Criticism
Conservative Party leader Kemi Badenoch criticised Burnham for not detailing his plans before taking office, describing his comments as “airy-fairy stuff”. She told the BBC she believed Burnham was “a people pleaser” rather than someone willing to make tough decisions. However, Burnham praised Badenoch as “probably much more capable than her predecessors” and also acknowledged Nigel Farage’s communication skills.
Labour deputy leader Lucy Powell defended Burnham’s agenda, arguing that the economy had been “overly privatised” and that “utilities and essentials of life don’t work in the interest of ordinary people.” She noted that bills were “going up and up because they are run in the interests of private interest, not for the consumers or for taxpayers.”
Transition of Power
Outgoing Prime Minister Sir Keir Starmer released a farewell video expressing pride in leaving the country “in a much better state than we found it two years ago.” The change in leadership marks a significant shift in UK politics, with Burnham’s early signals pointing to potential tax adjustments and a more interventionist economic strategy.
