Mr Burnham is set to become the Prime Minister on Monday morning
11:00, 19 Jul 2026Updated 11:06, 19 Jul 2026
Andy Burnham hints at £12,570 HMRC personal tax-free allowance change with new threshold
Andy Burnham has hinted at a new HMRC personal tax-free allowance for all workers. Mr Burnham is set to become the Prime Minister on Monday morning, after Sir Keir Starmer was succeeded by him as Labour Party government leader on Friday.
Sarah Coles from the investment platform AJ Bell said Mr Burnham would face similar difficulties as Sir Keir, who leaves Number 10 Downing Street just two years after a landslide victory, particularly if the country is hit by economic turmoil.
She said: “Promising to stick to fiscal rules means that if costs go up and you need more tax revenue, you will have put yourself in a bit of a bind and will have to tinker around the edges.”
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Mr Burnham has suggested that he would raise the £12,570 tax-free personal income allowance for workers.
On BBC Question Time on June 4, he said: “On the personal allowance, I’ve heard on so many doorsteps, and I’ve said to my team, let’s have a proper look at this and let’s develop a policy.”
The allowance has not gone up since April 2021 and is set to stay frozen until 2031 under Starmer’s government.
In September Burnham told The Telegraph that the government should introduce a lower 10p starting rate of income tax, similar to the one Gordon Brown introduced as chancellor in 1999, too.
Mr Burnham also said that there was “definitely a case” for the return of a 50 per cent top rate of tax for the wealthiest, which was brought in by Labour in 2010 but reduced to 45 per cent in 2013 by the Liberal Democrats and Conservative Party coalition government.
Mr Burnham will address the nation on Monday after becoming the government leader.
Sir Keir will reportedly resign tomorrow morning, with a visit to reigning monarch King Charles III.