What Burnham's Tax Plans Could Mean for Your Wallet
Andy Burnham, set to become Prime Minister on 20 July 2026, has signalled he’s willing to make changes to tax rules — but with strict limits. Here’s what it could mean for your finances.
In an interview with LBC, Burnham said there is “some room for movement” on tax within Labour’s election manifesto. However, he’s been crystal clear: he will not raise VAT, income tax, or national insurance. Those three taxes are off the table entirely.
So what will change? Burnham has pledged to help struggling businesses and hospitality venues. Pubs, clubs, and music venues would see a 20% cut in business rates, while smaller independent shops, cafes, and leisure businesses would benefit from a raised threshold for paying business rates — something that hasn’t moved since 2017. If you run or work for one of these businesses, this could ease pressure on your employer’s costs.
The trade-off is higher levies on giant online warehouses (think Amazon) and charges on owners of empty high-street properties. These changes aim to shift the burden from Main Street to big tech, rather than hitting ordinary workers or savers.
On a broader front, Burnham has also outlined plans to tackle the welfare bill differently. Rather than crude cuts to benefit levels — which would push struggling people into worse poverty — he wants to invest in education and mental health support. The idea is to help people into work and improve their wellbeing, rather than simply cutting what they receive.
One big challenge ahead: the government faces a £4.7 billion funding gap for defence spending, which the new chancellor will need to address in the autumn Budget. This means other areas of public spending may face scrutiny, so watch out for further announcements on spending cuts or tax changes then.
The key takeaway for most households: if you work for a pub, shop, or small business, there’s potential good news. If you’re an employee, your income tax and national insurance are safe. But keep an eye on the autumn Budget — that’s when the real detail on how the government will balance its books will emerge.
For the latest updates on tax changes and how they affect you, check the HMRC website or speak to your accountant if you run a business.