Andy Burnham has announced his candidacy for the position of UK Prime Minister, potentially replacing Sir Keir Starmer. During the Makerfield by-election campaign, Burnham proposed various policies that could impact personal finances, including taxes, benefits, and the state pension.
Following Starmer’s resignation announcement outside Downing Street, Burnham expressed his commitment to working collaboratively to address economic growth, cost of living, public services, housing, and opportunities for future generations.
Burnham hinted at revisiting the income tax personal allowance, which is currently frozen until April 2031. He also mentioned the possibility of reintroducing the 50p top rate of income tax and making changes to council tax, inheritance tax, and stamp duty if he assumes the role of Prime Minister. Additionally, Burnham pledged to maintain the state pension triple lock system.
Furthermore, Burnham emphasized the need for stronger public control over key services like energy, transport, and water. The selection of a Chancellor under a potential Burnham administration could significantly influence financial markets, particularly bond markets.
The pound recovered from initial losses on Monday as Starmer confirmed his resignation plans. The FTSE 100 Index remained stable, and UK Government bond yields held steady amidst the political developments.