Key Takeaways
- The beginning of Andy Burnham’s tenure as the UK’s 59th prime minister is expected to result in significant changes to economic policy and personal finance.
- The cost of the pension triple lock is under scrutiny, despite early pledges by the new Labour leader to keep the commitment.
- The new chancellor—yet to be announced—is expected to look closely at property taxation.
Who Will Be Andy Burnham’s Chancellor?
In recent days there have been conflicting reports regarding Andy Burnham’s choice of chancellor. Oddsmakers initially put Ed Miliband top of the list of most-qualified candidates, but it may not be so simple. The most financially-sensitive early decision Burnham will make, the selection of this key figure in the Cabinet will certainly shape market reactions to Burnham’s first 100 days in office. So far he has been tight-lipped about his intentions, but he has committed to the UK’s fiscal rules—maintaining consistency with the Rachel Reeves regime—and that he won’t raise the headline thresholds of income tax, national insurance, or VAT.
Will Andy Burnham Raise Taxes?
Keir Starmer’s chancellor, Rachel Reeves, increased taxation as a proportion of gross domestic product to its highest level in peacetime history—on two successive occasions. It’s now thought that a Burnham government will likely target high-earners and those with significant asset wealth to achieve its policy aims, though some of the specifics remain unclear. Capital gains tax, inheritance tax, and pensions are all thought to be key areas for the new government to re-examine as it prepares to reset the legislative agenda.
Will Andy Burnham Scrap Stamp Duty?
It’s now well established that Andy Burnham thinks the UK’s property taxation regime—including council tax and stamp duty—is outdated. In a bid to consolidate and simplify the system, and raise money for the Treasury in the process, one option available to Andy Burnham is scrapping stamp duty and council tax in favor of a “proportional property tax” based on land valuations. Rachel Reeves was under pressure to do this last year at her Autumn Budget, but didn’t go through with the idea. Will Burnham do what she didn’t?
What Does Andy Burnham Mean For My Pension?
The potential effects of political change on the UK’s pension saving system have rarely been out of the headlines over the last decade, so the arrival of Burnham in Number 10 has reignited speculation. Pension tax relief and allowance changes are on the table, as is the age at which people receive the state pension. Savers and investors are well used to speculation over this area of government policy. This time, it could be for real.
Will Andy Burnham Keep the Triple Lock?
There’s one policy Burnham has been firm on his commitment to: the state pension triple lock, which uprates annual state pension amounts by the higher of inflation, wages, or 2.5%. Cross-party consensus has emerged in favor of scrapping—or diluting—this mechanism. For now, Burnham says it stays, but the pressure to grapple with this policy is building.
