Incoming UK PM Burnham leaves door open to wealth tax

Andy Burnham, who is due to become UK prime minister on Monday, has refused to rule out introducing a wealth tax. In an interview with broadcaster Gary Lineker, the incoming leader said his government would first need to review the state of the public finances before making any decisions.

For European investors and businesses, the remarks signal a tightly constrained fiscal environment. Burnham, who won the Makerfield by-election last month to replace Sir Keir Starmer, confirmed he would stick to the Labour Party's 2024 election manifesto. That document rules out raising VAT, income tax or national insurance. In a separate interview with LBC, he noted there was "some room" for movement on tax.

The former Greater Manchester mayor offered a specific clue regarding business taxation. He suggested increasing business rates on warehouses to fund tax cuts for pubs and high-street retailers. Shifting the tax burden from retail to industrial logistics could directly affect commercial real estate investors and supply chain operators with UK exposure.

Regarding personal wealth, groups including Oxfam and Tax Justice UK have advocated for a 2% levy on assets over £10m, a threshold also reflected in Green Party proposals. While Burnham stressed that any requests for taxpayers to pay "a little more" were "for another day", he acknowledged the fiscal road ahead would be difficult.

"You know, we are going to have to work quite hard to make sure, you know, we can pay our way," he said.

The political backlash was immediate. Conservative leader Kemi Badenoch warned of a "summer of chaos" with Labour "obsessing about who they can tax". Reform UK's Treasury spokesman Robert Jenrick claimed Burnham had admitted people would pay more tax, demanding he rule out "ten taxes - £3,450 for every family" he previously supported.

On the international stage, Burnham signalled a pragmatic approach to US President Donald Trump, saying he would "meet him where he's at". He also reiterated that his party "got it wrong" in its initial response to the war in Gaza. Condemning the 7 October Hamas attack, he said it was "possible to criticise both things, rather than just pick a side", adding he had "real concerns about the destruction of Gaza".