Andy Burnham signals £12,570 threshold for paying income tax may rise in boost for millions

On the eve of becoming Prime Minister, Mr Burnham told how the freezing of the income tax thresholds since 2022 was “the thing I heard the most on the doorsteps” during the Makerfield by-election.He stressed that the issue was “lodged in my mind” as he was preparing to go to Buckingham Palace on Monday morning to meet the King and be invited in a “kiss hands” ceremony to form a Government. “So when people, they’re just characterising me as a tax raiser, well again it’s never that simplistic is it?” he told The Times. “The breathing space point is a really serious one. How do we just make people feel better?”Andy BurnhamPA WireThe freezing of the thresholds for paying income tax has raked in tens of billions of pounds for the Treasury in a “stealth tax”.Hundreds of thousands of people have been dragged into paying the 20p basic or 40p higher rate on income tax by the freeze, first introduced by Rishi Sunak and which Chancellor Rachel Reeves has extended by a further three years until 2031.Mr Burnham has been in talks with the Treasury in recent days as he is set to make a series of announcements to ease the cost-of-living crisis still being suffered by so many households.In a day of huge expectations, Sir Keir Starmer was set to deliver a speech in Downing Street after resigning as Prime Minister following a huge Labour revolt.He was then due to head to the Palace as he bows out of leading the Government.Sir Keir Starmer was leaving Government on MondayPA ArchiveFormer Greater Manchester Mayor Mr Burnham will follow Sir Keir in going to meet the King and on his return to Downing Street will deliver his first speech as Prime Minister, laying out a “ten-year plan”.Read MoreMr Burnham has already set sky-high expectations of his premiership, vowing to undo what he sees as the damage of 40 years of “neoliberalism” which he says has not benefitted many communities across the country.He has pledged the “biggest devolution of power in modern times” and the largest council homes building programme in the post-war period.In his speech, Mr Burnham was expected to urge the country to be honest about the challenges it faces and call for “reflection and resolution”.He will also say he is “acutely conscious” that the UK has had seven prime ministers in the last decade, stressing the need for more stable and responsible politics and pledging to restore faith in government.Crucially, he will seek to offer hope and optimism for the country, particularly for left-behind communities.Andy Burnham has faced a dilemma over whether to appoint Ed Miliband as his ChancellorPA WireHe has been tight-lipped about his selections, but is believed to have been weighing up either Energy Secretary Ed Miliband or Home Secretary Shabana Mahmood to be Chancellor.Makerfield MP Mr Burnham has said he wants to devolve power away from Westminster as one of his key priorities, driving that agenda with a new “No 10 North” in Manchester.Promising a “reset of priorities”, Mr Burnham has also announced he will scrap Sir Keir’s flagship digital ID programme to focus money and attention on the cost of living.Reports have suggested cost-of-living support could include action on energy bills, including allowing more oil and gas drilling in the North Sea.Another priority is likely to be reforming social care, which he has said is something he wishes to “expend political capital” on.Conservative Party leader Kemi BadenochPAConservative leader Kemi Badenoch has written to Mr Burnham saying her party will work with him to cut the welfare bill and calling for him to rule out tax rises and back new oil and gas drilling.Despite his calls for a less confrontational politics, she said she would “never shirk” from holding him to account, adding: “You will enter office without having set out a clear plan on any of the issues facing our country.“You have refused calls to come to Parliament for questions from MPs, and you have not submitted yourself to serious media scrutiny. This is not a promising start.”