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Burnham ‘plans £38bn tax raid’

9 hours ago 15

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Andy Burnham is to launch a £38bn tax raid on the wealthy to fund a spending spree in office, analysis by Reform UK has found.

A report into the prime minister-in-waiting’s pledges found Mr Burnham would bring Labour’s total increase in taxation from around £66bn to more than £100bn a year.

This includes promises of a “care levy” of up to 10 per cent of the value of estates after death, reforming the rates of capital gains tax (CGT), and imposing National Insurance on landlords’ rental income.

Implementing a torrent of new taxes not mentioned in Labour’s 2024 manifesto will increase pressure on Mr Burnham to call an early election. He is due to be elected unopposed as Labour leader and prime minister on Friday.

Robert Jenrick, Reform’s economy spokesman, said: “Andy Burnham has spent 20 years reaching for other people’s money – a death tax on family homes, a graduate tax on young people getting their first pay cheque, a £14bn raid on savings and investment, and new levies on everything from your parking space at work to your weekend away.

“Taken together with Rachel Reeves’s record, Labour could well raise more than £100bn a year of tax rises. If Mr Burnham disputes this, the remedy is simple: rule these 10 taxes out, by name, today.”

The UK already has its highest tax burden on record, following raids by Rachel Reeves on employer National Insurance contributions, new VAT on private schools and a freeze to income tax thresholds.

Mr Burnham has declined to set out detailed tax plans ahead of his first Budget but has pledged to remain within Labour’s fiscal rules, which require debt to be falling as a percentage of GDP.

However, he is considering appointing Ed Miliband, the Energy Secretary, as his chancellor after taking office on July 20, despite Labour MPs urging him to appoint a less controversial and more centrist figure like Wes Streeting or Shabana Mahmood.

On top of this, Mr Burnham has hinted at a range of expensive spending plans that will require funding from taxation.

He has suggested he would support increasing the top rate of tax to 50 per cent for the highest earners, which would amount to a breach of Labour’s 2024 manifesto not to raise income tax.

He has also refused to rule out a range of tax changes, including aligning CGT with income tax, which he said earlier this month he would “want to look at”.

Mr Burnham is also considering lowering the threshold of Ms Reeves’s “mansion tax” on properties worth more than £2m to just £1.5m, which would drag many homeowners in London and the South East into higher rates of council tax.

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