Incoming Prime Minister Andy Burnham has declined to rule out introducing a wealth tax in the future, saying the government may eventually need to “ask for a little more” in tax as it assesses the country’s finances.
Speaking in an interview with former footballer and Match of the Day presenter Gary Lineker, Burnham said it was too early to make firm commitments on tax policy before reviewing the state of the public finances. He added that his priority was to unite the country rather than create “new divisions”.
“I’m not going to rule things out right now,” Burnham said. “I do believe we need a greater sense of fairness.”
The Labour leader, who is set to become prime minister on Monday, acknowledged that difficult decisions lay ahead.
“I’m not going to shy away from that,” he said. “We are going to have to work quite hard to make sure we can pay our way.
“And at some point that might be having to ask for a little more. But those decisions are not for now. They’re for another day.”
Since winning the Makerfield by-election last month and launching his bid to succeed Sir Keir Starmer as Labour leader and prime minister, Burnham has outlined few detailed tax proposals.
However, he has suggested there is “some room” for changes to the tax system. In a previous interview with LBC, he indicated that higher business rates for warehouses could help fund tax reductions for pubs and some high street businesses.
Burnham has also said he intends to honour Labour’s 2024 general election manifesto pledge not to increase VAT, income tax or National Insurance.
With those commitments limiting the government’s options for raising additional revenue, some Labour MPs on the party’s left, along with economists and campaign groups, have advocated a wealth tax.
One proposal, backed by organisations including Oxfam and Tax Justice UK, would introduce a 2% annual levy on assets worth more than £10 million.
The Green Party has proposed a similar policy, calling for a 1% annual tax on wealth above £10 million, rising to 2% on assets exceeding £1 billion.
Responding to Burnham’s comments, Reform UK’s Treasury spokesman Robert Jenrick claimed the Labour leader had admitted taxes could rise, urging him to rule out what he described as “the ten taxes” he had previously supported.
Conservative leader Kemi Badenoch also criticised Burnham’s remarks, saying he was “already talking about raising your taxes again” before taking office and accusing Labour of focusing on tax rises to fund increased spending.
