Andy Burnham, the newly appointed Labour Prime Minister, has indicated the potential return of the 50p income tax rate as part of plans to adjust the personal tax allowance. Speaking at his first press conference since taking office, Burnham revealed he is considering increasing the currently frozen personal allowance—the income threshold at which people begin paying income tax.
When directly asked about reinstating the 50p additional or top tax rate, Burnham neither confirmed nor ruled out the measure. He responded cautiously, saying, “I think that’d be just premature to say that. I’ve barely got my feet under.”
Historically, the 50p top rate was introduced by a Labour government in 2010 before being reduced to 45p by the Conservative-Liberal Democrat coalition in 2013. If reintroduced, individuals earning over a high-income threshold would pay 50p tax on every pound earned beyond that limit.
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Burnham emphasized fiscal responsibility, stating, “None of this is about taking risks with the economy. I’ve never done that in any role that I’ve had. I’ve always taken a very prudent approach.”
At his address outside No 10, Burnham also promised “some breathing space” for households struggling with the cost of living, announcing the government’s intent to implement fully funded measures such as cuts to energy bills and bus fares expected in the coming days.
Launching his premiership with the unexpected appointment of John Healey as chancellor, Burnham vowed to restore stability and public trust in politics. Speaking candidly and observed by his wife Marie-France van Heel, he remarked, “I am acutely conscious that I am the sixth person in the last 10 years to walk up this street, the seventh prime minister since 2016, making this a moment for reflection and new resolution.”
Recognizing widespread public dissatisfaction, he concluded, “I know people at home are fed up with politics. I hear you, and I want to be honest with you. We have not been good enough, and we need to be better. We will be.”