Andy Burnham has indicated that the £12,570 income tax personal allowance, which has been frozen since 2022, could be increased in the upcoming Budget. While the new Prime Minister stopped short of making a firm commitment, he acknowledged the issue as one of significant concern, particularly for low-income earners.
Burnham’s comments followed his recent election as Labour Party Prime Minister and his campaign discussions, where he heard frequent calls for a rise in the tax-free allowance during the Makerfield by-election. He described the freeze as “the thing I heard the most on the doorsteps,” emphasizing how deeply the issue is embedded in his thinking.
Shortly after taking office, Burnham appeared to clarify his position, stating, “All of this will be looked at at the Budget,” but he cautioned about the financial constraints facing the government. “It’s challenging for people on the lowest incomes, who have perhaps been most affected by that,” he explained.
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On a visit to Bath, Burnham reiterated his intention to approach questions about tax policy “honestly” and with greater transparency, reflecting his commitment to rebuilding trust in politics. While firmly stating that “there is no commitment at this point to change,” he insisted the matter would be under review during the Budget process.
Addressing media reactions, Burnham remarked, “It’s funny these days you can’t answer a question honestly without people reading everything else into it,” underscoring his desire to communicate plainly amid a sometimes hostile media environment.
Inside Labour, some see Burnham as newly adjusting to the rigors of premiership and political scrutiny. A party official commented, “He is a talented communicator, but this is a hostile environment. He hasn’t had much scrutiny before, so people are eager to understand his priorities.”
Political communications expert Sean Kemp noted Burnham’s distinctive style, saying, “He knows what he’s doing, but he doesn’t care. He’s going to keep saying it, and that’s just how he does things.”
As the Budget approaches, all eyes will be on whether Burnham will translate his early signals into a concrete policy to raise the personal tax allowance, potentially easing the tax burden on millions of lower-income Britons.