Andy Burnham, the newly appointed Labour Prime Minister, has indicated plans to increase the personal income tax-free allowance from the current £12,570 to £12,750, offering relief to millions of taxpayers. Highlighting this issue as one of the most frequent voter concerns during the Makerfield by-election, Burnham emphasized that the frozen income tax thresholds since 2022 have weighed heavily on his agenda.
He stated, “The freezing of income tax thresholds is lodged firmly in my mind. While some may prematurely label me a tax raiser, the reality is far more nuanced.” Burnham elaborated that any adjustments to tax thresholds will be carefully reviewed at the upcoming Budget, mindful of the challenging financial landscape the country faces.
Recognizing the disproportionate impact on low-income individuals, Burnham stressed his awareness of the hardship caused by stagnating thresholds. “Raising the personal allowance isn’t without consequences, but it’s an issue I am actively exploring,” he explained. Had the allowance kept pace with inflation measured by the Consumer Price Index (CPI), it would have risen significantly—from £12,570 to £17,380—offering substantial tax relief.
READ MORE: Channi’s Indian Restaurant Closed by Court Due to Serious Health Risks
READ MORE: Andy Burnham Announces Energy Bill Cuts as New Prime Minister
In addition to domestic fiscal matters, Burnham’s prompt outreach to international leaders underscores his commitment to maintaining strong global partnerships. Within an hour of assuming office, he spoke with US President Donald Trump to emphasize the importance of the UK-US alliance. The British embassy in Washington noted the leaders “agreed to remain in close contact” over shared priorities.
Burnham also engaged in discussions with French President Emmanuel Macron. According to a Downing Street spokesperson, the dialogue focused on strengthening UK-France relations, collaborative efforts to support Ukraine amid Russia’s invasion, and coordinated initiatives to de-escalate tensions in the Middle East, including efforts concerning the Strait of Hormuz. The Prime Minister also expressed gratitude to Macron for facilitating the loan of the Bayeux Tapestry to the UK, symbolizing the enduring friendship between the two nations. Both leaders look forward to continued communication and Macron’s forthcoming visit to the UK.