The incoming PM has failed to rule out a wealth tax once he gets the keys to Number 10 Downing Street
Andy Burnham has failed to rule out implementing a wealth tax once he gets the keys to Number 10 Downing Street.
During an interview with Gary Lineker for Goalhanger, the incoming Prime Minister suggested the Labour Government might "have to ask for a little more".
While Mr Burnham did not explicitly commit to any particular tax charge, he asserted that the UK needed a "greater sense of fairness" when it comes to the economy.
This latest comment from the former Greater Manchester Mayor comes amid reports that Shabana Mahmood has been picked to be Chancellor in a Burnham premiership.
Mr Burnham shared: "I’m going to obviously take my time to properly look at the state of things, particularly the state of finances.
"And I just said a moment ago, Gary, about bringing people together. You know, I don’t want to come in and sort of, if you like, create new divisions and pitch people one against another.
"I’m not going rule things out right now. I do believe we need a greater sense of fairness and people feeling that things are being done in the right way and a fair way.
"But at the same time, you know, I don’t want to sort of be perceived as somebody who’s coming in with grudges and agendas and, you know, going to just immediately find or demonise one group or create a new way of dividing people."
While Mr Burnham has been cagey over details in his looming fiscal agenda, he has previously backed calls for a land value levy as a replacement for the existing council tax model.
He added: "So, you know, decisions to be taken in time, they’re going to be difficult. I’m not going to shy away from that.
"You know, we are going to have to work quite hard to make sure, you know, we can pay our way.
"And at some point that might be having to ask for a little more. But, you know, those decisions are not for now. They’re for another day."
Previously, wealth management firm Rathbones warned that more than £100billion of wealth could leave the UK, or be placed into less productive assets, if a wealth tax were implemented.
Economists suggested such a levy could cost the Government £600million to set up, with ongoing compliance and administrative costs on taxpayers of £700million a year or more.
Oliver Jones, head of Asset Allocation at Rathbones, explained: "There is clear evidence that a recurring wealth tax would be economically damaging to the UK.
"Such a tax would require annual valuations of complex and illiquid assets - including private businesses, art, and intellectual property - for thousands of individuals."
Reform’s Shadow Chancellor Robert Jenrick, said: "Mr Burnham has finally broken his two-week silence and admitted that he will hike people’s taxes.
"But he won’t say which ones. He should stop hiding and rule out the ten taxes, £3,450 for every family, he’s previously supported but has no mandate for. Reform UK will fight him at every turn. We are the only party standing up for the hard-working people that hold this country together."
