Story perspectives

Labour pledges no income tax, VAT rises in budget

By Drooid · Sep 14, 2026, 10:15 AM UTC · How we work

Summary

Story summary

Prime Minister Andy Burnham chaired a roundtable and reception for UK firms at Downing Street.
Critics warned the meeting could hide looming tax rises that would burden families and businesses.
Burnham and Chancellor John Healey are preparing a 28 October budget, pledging not to raise income tax, national insurance or VAT.
Shadow business secretary Julia Lopez said Labour’s tax and red tape weakened the market, urging welfare cuts for tax relief.

History

Historical Context

In May 1997, Labour Prime Minister Tony Blair won a landslide victory, promising to modernize Britain’s tax system and boost public investment. His Chancellor Gordon Brown introduced a 2 percent income-tax cut and a £10 billion business-rate relief, while HM Treasury projected a 1.5 percent GDP rise. Today, Andy Burnham and Chancellor John Healey face tax cuts against the 28 October budget, mirroring Blair’s vow to keep income tax, national insurance, VAT unchanged. The 1997 reforms entrenched a political norm that tax-free promises become electoral benchmarks, shaping current debates over welfare reductions and business incentives.

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Story summary

Prime Minister Andy Burnham chaired a roundtable and reception for UK firms at Downing Street.
Critics warned the meeting could hide looming tax rises that would burden families and businesses.
Burnham and Chancellor John Healey are preparing a 28 October budget, pledging not to raise income tax, national insurance or VAT.
Shadow business secretary Julia Lopez said Labour’s tax and red tape weakened the market, urging welfare cuts for tax relief.

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