Andy Burnham rows back on plans to increase tax-free personal allowance | Politics | News
He said it was “lodged in my mind” as it was โthe thing I heard the most on the doorstepsโ when campaigning in the Makerfield by-election. But an ally of the Prime Minister told the Financial Times: โThere is not any commitment to do it. What he was saying is that people are feeling unheard.โ
Another source added that Mr Burnham had looked at making an announcement on increasing the allowance but shied away because of the cost.
Mr Burnham told reporters on Monday that the personal allowance would be looked at in the Budget.
He added: โObviously, itโs difficult, given the financial circumstances in which we find ourselves.โ
Ahead of entering 10 Downing Street, he had told The Times: โSo when people, theyโre just characterising me as a tax raiser, well again itโs never that simplistic, is it? The breathing space point is a really serious one. How do we just make people feel better?โ
The personal allowance has been kept at ยฃ12,570 since April 2021, and the steals tax is due to stay in place until 2031.
It comes as Mr Burnham announced that VAT would be scrapped on electricity bills to ease cost of living pressure.
But Darren Jones, Sir Keir Starmer’s former right-hand man, said the policy was โunfundedโ.
Mr Burnham used the first meeting of his Cabinet to say that ministers must give people โa sense that help is comingโ but vowed to always โshow how weโre going to payโ for policies.