Burnham does not rule out wealth tax as he prepares to become prime minister

Andy Burnham has not ruled out a wealth tax, saying his incoming government may at some point need to ask for "a little more" in tax. The Labour MP, who is due to become prime minister on Monday, made the comments in an interview with former footballer and Match of the Day presenter Gary Lineker. He said he wanted first to review the state of the public finances and focus on "bringing people together" rather than creating "new divisions".

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Burnham said he was not prepared to rule anything out immediately, adding that decisions on tax would be difficult and would come later. He said the government would have to work hard to make sure it could "pay our way", and that "at some point" this might mean asking for more. He stressed that those choices were "not for now" and were "for another day".

The comments come as Burnham has yet to set out detailed tax plans since declaring his intention to replace Sir Keir Starmer as Labour leader and prime minister after his by-election win in Makerfield last month. He has previously suggested there was "some room" for movement on tax in an interview with LBC. He also floated the idea of increasing business rates on warehouses to help fund tax cuts for pubs and some high-street businesses.

At the same time, Burnham said he would stick to Labour's 2024 general election manifesto pledges not to raise VAT, income tax or national insurance. That leaves limited room for raising revenue without breaking those commitments. As a result, some Labour MPs on the left of the party, along with economists and campaigners, have argued for a tax on wealth as one possible option.

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One proposal backed by Oxfam and Tax Justice UK would impose a 2% levy on assets above £10m. The Green Party of England and Wales supports a similar approach, with a 1% annual tax on assets above £10m and 2% on assets above £1bn. The debate reflects wider pressure on any incoming government to explain how it would fund spending while keeping within its stated tax promises.

Burnham's remarks are likely to sharpen scrutiny of his economic plans before he takes office. Reform UK Treasury spokesman Robert Jenrick said Burnham had admitted that "people will have to pay more in tax" and urged him to rule out what he called the ten taxes he had previously supported. Conservative leader Kemi Badenoch also criticised the comments, although the full response was not included in the supplied material.

What remains unclear is whether Burnham will move toward any wealth tax proposal, or whether he will keep such options open while reviewing the public finances after taking office.

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