Andy Burnham's tax plans: what could they mean for businesses and taxpayers?

CREATED BY ROGER EDDOWES Published: 06/08/2026 @ 09:00AM #AndyBurnham #LabourLeadership #UKTaxSystem #ReadyToLead #BurnhamGovernment

With Andy Burnham declaring himself 'ready' to lead the country, attention has naturally turned to what a Burnham government might mean for the UK's tax system ...

What could Andy Burnham's tax plans mean for businesses and taxpayers?

While his speeches have focused heavily on fairness, economic renewal and supporting business, they have been notably light on detailed tax policy. I believe that's understandable at this stage of the political cycle, but it does leave businesses, investors and individuals trying to separate genuine direction from political positioning.

At the moment, there is plenty of speculation
but very little certainty!

One of Burnham's clearer commitments has been to stick to Labour's existing fiscal rules and to honour the 2024 manifesto pledge not to increase the main rates of income tax, employee National Insurance or VAT for working people.

Corporation tax also appears unlikely to rise beyond its current rate. However, those promises do not remove the need to raise revenue.

I think that's the balancing act any future government will face. With continuing pressure on public finances, defence spending and the ongoing cost of living, there will almost certainly be pressure to find additional sources of income.

Much of the discussion therefore centres on wealth
and assets rather than earnings!

Capital Gains Tax, Inheritance Tax and property taxation have all been mentioned as possible areas for reform. Some commentators believe investment income could gradually be taxed more like earned income, while others expect further reviews of reliefs and allowances rather than dramatic headline-grabbing changes.

Personally, I feel we're more likely to see targeted reforms than sweeping overnight changes. Previous governments have often considered major reforms before stepping back, largely because significant changes can alter taxpayer behaviour and sometimes reduce, rather than increase, the tax collected.

Property taxation could also become a major talking point!

Burnham has previously spoken positively about replacing Council Tax and Stamp Duty with a land value tax. While many agree that the current system is outdated, implementing such a change would be a huge undertaking involving property revaluations, complex legislation and considerable political debate.

I think this is one area where the ambition is easier to announce than it is to deliver, so even if there is genuine appetite for reform, it would almost certainly take years to implement.

For businesses, the picture remains equally uncertain. Burnham has criticised previous increases to employer National Insurance and has spoken about making it easier for businesses to employ staff. Business rates reform, particularly for smaller firms and the hospitality sector, has also featured in his comments.

These ideas may prove popular, but every tax reduction would still need to be balanced against the government's wider spending commitments. I believe that's where we'll discover whether today's rhetoric becomes tomorrow's policy.

The biggest takeaway is that, despite the headlines, very
little has actually been confirmed!

Political leadership campaigns naturally focus on broad ambitions rather than detailed legislation, and history shows that governing often requires compromises that campaign speeches never mention.

My advice would be not to assume major tax changes until we see properly costed proposals and draft legislation. For business owners, investors and taxpayers, the sensible approach is to stay informed without making financial decisions based on speculation alone.

The direction of travel may become clear, but the destination is still far from certain.

Until next time ...

ROGER EDDOWES
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About Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach. Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.

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