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Burnham Leaves Wealth Tax Viable, Rejects VAT Increase

7/15/2026

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Summary

Story summary

Incoming Prime Minister Andy Burnham said a wealth tax remains on the table.
Burnham reaffirmed Labour’s manifesto pledge not to raise VAT, income tax or national insurance.
Rathbones warned the tax could push over £100 billion of wealth abroad and cost £600 million to set up plus £700 million annually in compliance.
Reform UK Shadow Chancellor Robert Jenrick said Burnham must rule out ten specific taxes and pledged to fight any tax hikes.

History

Historical Context

After the 2008 crisis, the Labour government introduced a temporary 2009 bonus tax and, in 2011, the UK launched a bank levy of 0.05-0.10% on large banks’ liabilities, part of George Osborne’s Project Merlin that added £800 million to the levy. Andy Burnham’s wealth-tax proposal mirrors that levy, while Conservative shadow chancellor Robert Jenrick and investment firm Rathbones warn it could trigger capital flight.

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Story summary

Incoming Prime Minister Andy Burnham said a wealth tax remains on the table.
Burnham reaffirmed Labour’s manifesto pledge not to raise VAT, income tax or national insurance.
Rathbones warned the tax could push over £100 billion of wealth abroad and cost £600 million to set up plus £700 million annually in compliance.
Reform UK Shadow Chancellor Robert Jenrick said Burnham must rule out ten specific taxes and pledged to fight any tax hikes.

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