Andy Burnham has confirmed he will run to replace Sir Keir Starmer as UK Prime Minister, sparking questions about what his premiership could mean for personal finances. The former Greater Manchester Mayor has yet to detail a full platform, but the Mirror has compiled his recent statements on taxes, benefits, the state pension, and investments.
Starmer announced his resignation outside Downing Street this morning, calling for an "orderly transition." Burnham responded on X: "As we move forward, our priority must be to work together to get the country back to where we all want it to be. People want to see progress on economic growth, cost of living, public services, housing and opportunities for the next generation."
Taxes: Personal Allowance and Top Rate
Burnham has hinted at revisiting the income tax personal allowance, currently frozen at £12,570 until April 2031. According to analyst Ms Coles, "While he hasn’t promised that as Prime Minister he would raise it, he does want to consider it." He has also suggested there is "definitely a case" to reintroduce the 50p top rate of income tax, though he has not confirmed it for his potential premiership. Currently, a 45p rate applies to earnings above £125,140.
Analysts expect potential changes to council tax, inheritance tax, and stamp duty. Ms Coles noted: "He has mentioned land as being undertaxed and has spoken about reforming council tax and stamp duty, which he says is regressive. Before this campaign he had previously suggested inheritance tax ought to be scrapped and replaced with a ‘care levy’ to fund a more joined up national health service and social care system. He said the inheritance tax changes for farmers should be reconsidered too."
State Pension: Triple Lock Commitment and WASPI Support
Burnham last week committed to keeping the state pension triple lock, which increases pensions annually by the highest of earnings growth, inflation, or 2.5%. He told the i Paper that scrapping it would be a "very damaging thing to do." He has also expressed support for WASPI women born in the 1950s affected by state pension age changes but stopped short of backing cash compensation. Ms Coles said: "His team clarified that he hadn’t meant full financial compensation. One suggestion is that they might get earlier access to cheaper travel schemes." Full compensation would cost an estimated £10.5 billion.
Benefits: Cuts Tied to Defence Spending
Burnham last week said he would cut the benefits bill to boost defence spending, but without "crude cuts," focusing on "rethinking the education system" to get young people into work. Ms Coles commented: "Burnham has opposed benefit cuts in the past. More recently he has said he would cut the benefits bill in order to boost spending on defence, but that he would focus on providing more opportunities, so that people were able to work, rather than just making short-term cuts. He believes a localised approach to delivering state support would be more efficient and effective."
Investments: Nationalisation and Market Reaction
Burnham has indicated stronger public control over energy, transport, and water, which could affect investors in those sectors. Dan Coatsworth, head of markets at AJ Bell, highlighted the importance of Burnham's choice of Chancellor: "Bond investors like boring and dull – they want someone who has a plan where the maths stacks up and they stick to it." The pound rebounded from early losses after Starmer's resignation announcement, while the FTSE 100 and UK government bond yields remained steady.
