Burnham Walks Back Suggestion He’ll Lift UK Income Tax Threshold

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessBurnham Walks Back Suggestion He'll Lift UK Income Tax ThresholdAndy Burnham isn’t considering an increase to the UK’s cap on tax-free earnings, according to people familiar with the matter, as the new prime minister tries to signal fiscal discipline to skeptical bond markets.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.Andy Burnham during his first cabinet meeting on July 21. Photographer: Chris Ratcliffe/Bloomberg Photo by Chris Ratcliffe /Bloomberg(Bloomberg) — Andy Burnham isn’t considering an increase to the UK’s cap on tax-free earnings, according to people familiar with the matter, as the new prime minister tries to signal fiscal discipline to skeptical bond markets.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountBurnham suggested earlier this week that he could raise the £12,570 ($17,000) threshold at which individuals start paying income tax, effectively giving millions of workers a tax cut. But the government isn’t considering any changes to the so-called personal allowance as part of Burnham’s initial plan to tackle the cost of living, according to people familiar with the matter who asked not to be named while discussing policy deliberations.The £12,570 threshold has been frozen for five years, resulting in more people being dragged into paying tax as earnings rise with inflation. Burnham told the Times newspaper over the weekend of “frustration about the personal allowance” he had heard while campaigning in the by-election that gave him a seat in the House of Commons last month. The issue was “lodged in my mind,” he added. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe prime minister then told reporters after taking power on Monday that “all of this will be looked at” in the next budget, while conceding any change would be expensive and “difficult given the financial circumstances in which we find ourselves.” Even a £100 increase in the allowance would cost the UK Treasury more than a billion pounds, according to analysis by EY last year. Increasing it by 10% would cost £11.7 billion. The Labour government’s reluctance to change the threshold was reported late Tuesday by UK newspapers including the Financial Times and Telegraph.Burnham has committed to his predecessor Keir Starmer’s Labour Party campaign manifesto from 2024, which included a promise not to increase rates of income tax. That would rule out increasing the top rate of income tax paid by higher earners to offset the cost of raising the personal allowance.The prime minister is facing questions about how he will fund the lofty policy goals he has floated his first days in government as he attempts to rebuild support among a disaffected electorate that soured on Labour under Starmer. Yields on the benchmark 10-year UK government bond reached a two-year high on Tuesday as investors look for credible fiscal plans. Burnham and his new chancellor of the Exchequer, John Healey, pledged fiscal discipline at the first meeting of the new cabinet on Tuesday while repeating promises to ease the cost of living for millions of voters. “We’ve got to show that our commitment to the fiscal rules is real, and we’re prepared to make difficult decisions in relation to that,” Burnham said. The government announced on Tuesday that it would scrap a 5% tax on energy bills starting from October. Burnham has said there will be further measures announced later this week to ease cost pressures on working Britons.On Wednesday Burnham is expected to announce a reduction on the national cap on all bus fares in England outside London to £2 from £3. The change is set to come into force in January.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.