Burnham Eyes Wealth Tax, Pledges Sweeping Regional Power Shift
New Labour leader outlines vision for devolved authority and economic rebalancing away from London, challenging traditional investment models.
Sarah Connor
Andy Burnham has assumed the leadership of the Labour Party, confirming a significant shift in the party's direction and immediately signalling a potential wealth tax.
Burnham stated his government may 'ask for a little more' tax at some point, pointedly not ruling out a wealth levy.
He also indicated that raising taxes will not be an imminent step once he assumes the role of Prime Minister.
Liverpool City Region Mayor Steve Rotheram confirmed Burnham is considering introducing a wealth tax, a measure that would reshape the nation's economic landscape.
Rotheram emphasized voters must grasp what a wealth tax would 'achieve' for Britain, warning it could appear punitive towards successful individuals.
He suggested measures affecting better-off pensioners could gain acceptance if linked to tangible benefits, such as a guarantee to create a million apprenticeships for young people.
Beyond the legal debate, Rotheram also claimed that replacing council tax and stamp duty with a proportional property tax would create 'more losers than winners,' revealing the inherent complexities of tax reform.
He emphasized that fairness would drive Burnham's actions, framing potential tax changes within a broader ethical context.
Both Rotheram and Burnham advocate for a substantial reallocation of power and resources, moving them decisively away from London and towards the UK's regions.
This vision directly challenges the historical centralization of authority in Westminster and Whitehall, a pattern dominating British governance for centuries.
On a separate front, Burnham stated he will not attempt to return the UK to the European Union, marking a clear stance on a divisive national issue.
He announced a commitment to building a 'new politics' focused on problem-solving rather than point-scoring, aiming to restore public trust.
Burnham claimed he would work relentlessly to build a culture of one Labour team, asserting that change begins within the party itself.
He claimed an insidious briefing culture within Labour had undermined the party and caused public mistrust, vowing to eradicate it.
The conference itself took place at the Trades Union Congress headquarters in central London, a symbolic location for Labour's traditional base.
Burnham acknowledged Keir Starmer's leadership and achievements, citing progress on workers' and renters' rights, falling NHS waiting lists, and rail returning under public control.
He claimed Starmer positioned Labour to change people’s lives, citing new rights for workers and renters, falling NHS waiting lists, and rail renationalization.
Burnham won the Makerfield by-election last month, securing a mandate that propelled him to the party's top position.
The Makerfield MP claimed Burnham promised to get the country pulling together again and vowed to change the Labour Party.
He pledged to devolve power away from Westminster, giving people more power over life’s essentials, and sought to counter criticism of being too focused on Manchester.
Burnham claimed the people of Makerfield, on behalf of forgotten places, called for a return of the Labour they once knew.
This strategic shift follows a historical precedent of regional resurgence; Manchester's city center, devastated by an IRA bombing in 1996, now attracts events like the Brit Awards from London.
Latest internal migration figures show more people moved from London to Manchester than the other way around, demonstrating a demographic shift.
Burnham plans ambitious projects for his city region, including an appeal to FIFA to host the 2035 women's football World Cup final in Manchester instead of Wembley.
He also collaborates with other mayors on a 'Great Northern' Olympic bid across the north of England, with a plan afoot to host the Ryder Cup in Bolton.
Burnham believes sports bodies require 're-educating' about the rest of the country, challenging the traditional focus on London for major sporting events.
The Treasury's Green Book traditionally prioritizes existing areas of high growth and land value for infrastructure spending, a policy Burnham openly criticizes.
He claims the Green Book drags investment in transport to the south of England, noting that no project in the north passed the Green Book in 2007.
Burnham argues that the north of England is squeezed in a 'pincer' by the Barnett formula, which allocates public spending and tops up funds for Scotland, Wales, and Northern Ireland.
He advocates for a law, similar to Germany's 'Basic Law' with its duty of 'equivalent living standards,' to protect local government and ensure regions are consulted on long-term decisions.
Regarding future policy, Burnham proposes a 'Northern Way' on Net Zero, focusing on subsidizing the transition, retrofitting, cutting bills, and building exportable, locally owned industry.
He characterizes the 'Whitehall way' on Net Zero as relying on bans, charges, and taxes that disproportionately affect the poorest, contrasting his approach with current governmental strategies.
Meanwhile, Michelle O’Neill, Northern Ireland’s First Minister, stated that successive British governments have implemented policies catastrophic for ordinary people, cutting vital public services and deepening inequalities.
O'Neill asserted that the interests of all people in Ireland would be best served with full control of their own affairs in a new and united Ireland.
Conversely, Gavin Robinson, DUP leader, countered that Northern Ireland needs a Prime Minister who believes in the Union, secures borders, and restores its full place within the UK internal market.
Robinson stated the public will judge Burnham on his courage to reject Labour’s recent failures, not by speeches.
Gareth Bacon, MP for Orpington, claimed any new wealth tax proposed by Burnham would exacerbate London's already high taxes, signaling immediate opposition from some quarters.
Burnham stated, “We will take power back from Westminster and Whitehall, and give it to the place where you live – more power over life’s essentials, so you can make them work better and more affordable for people.”
We will take power back from Westminster and Whitehall, and give it to the place where you live – more power over life’s essentials, so you can make them work better and more affordable for people.
He added, “We want to give your area more power to build the council and social homes that you desperately need for those families I was talking about a moment ago, more power to improve your high street, backing local businesses such as the pubs and the shops that bring them to life.”
Burnham concluded, “I will be a leader for the north, the south, the east and the west, plus Scotland, Wales and for Northern Ireland,” outlining a comprehensive national leadership ambition.
I will be a leader for the north, the south, the east and the west, plus Scotland, Wales and for Northern Ireland.