How policies from Prime Minister Andy Burnham and Chancellor John Healey could affect your finances

12 August 2026

Andy Burnham is the sixth prime minister since David Cameron resigned in July 2016. 

Following the latest in a carousel of changing leadership during the past decade, you may be concerned about what may happen next and how potential changes might affect your finances.

Indeed, when Boring Money asked people how they felt about Andy Burnham, 50% of respondents thought he would be negative for their personal finances. Only 7% believed he would be a positive force.

Andy Burnham isn’t shying away from making big moves – quite literally

On his first day in office, Burnham announced that he’d be working from No10 North based at GCHQ’s Heron House – a short 15-minute drive from the Depledge office in Trafford Park (traffic depending).

The official government press release said: “The Prime Minister is expected to work from No10 North each week so that decisions about the country’s economic future will no longer exclusively be made in Westminster. Other ministers will also work from No10 North on a regular basis, underlining this Government’s determination to do things differently.”

The Autumn Budget will be held on Wednesday 28 October

Promising “a Budget that moves money and power out of Westminster, and into every postcode around Britain,” John Healey is fully behind the plan for “fiscal devolution”.

However, to fund Andy Burnham’s priorities – including devolution and increased defence spending – many experts have already warned that Healey will likely need to raise taxes. 

Faced with that or cutting spending elsewhere, we’re almost certainly going to see some tax rises, particularly because existing pressure on public finances means it would be fiscally irresponsible to increase government borrowing.

We’ll keep you fully informed about the announcements in the next Budget with our usual update, which will outline the main points of the speech and how the planned changes may affect you, your family, and your business.

3 new measures already announced

Andy Burnham has already announced:

1. A VAT cut on energy bills – due to drop from 5% to zero from 1 October, saving a typical household about £45 a year.
2. A £2 cap on bus fares (outside London). And, for the first time in 30 years, rail fares in England are also frozen until March 2027. 
3. Reduced business rates for pubs – from April 2027, business rates will be reduced by 20% for pubs, clubs, and live music venues, on top of the 15% relief already in place.

Standing behind the existing Labour manifesto, Burnham has also indicated there will be no increases to Income Tax, National Insurance, or VAT for ordinary families. 

Note the “for ordinary families” – which may prove to be an important caveat.

Signals suggest that tax changes we’re likely to see will focus on wealth over earnings

Here are some of the key tax changes that have been mooted so far.

Capital Gains Tax

The last time Capital Gains Tax (CGT) rates increased was on 30 October 2024, when the basic rate rose from 10% to 18% and the higher rate increased from 20% to 24%. 

With Burnham open about his views on taxing wealth over labour, many expect that CGT could be increased to align more closely with Income Tax bands.

This is an area we’ll be watching closely. If the tax owed on profit made from the selling and disposing of assets is overhauled, you may need to take more care when doing so in the future.

If CGT isn’t targeted in this Budget, it’s likely only a matter of time before it’s revisited. 

Inheritance Tax

Inheritance Tax (IHT) is another area attracting its share of speculation. 

Already a big topic of conversation, there’s a chance that the new government could review changes introduced in April 2026 – namely on the controversial Agricultural Relief (AR) and Business Relief (BR) – which were capped at the first £2.5 million. Assets qualifying for either relief that exceed this cap receive relief at 50%.

There’s been little mention of reassessing unused pensions and the fact that they will become subject to IHT from April 2027. Given Burnham’s stance, it’s unlikely that this will be taken off the table.

Read more: How proposed Inheritance Tax rule changes on pension wealth could affect your estate plan

Meanwhile, the Chartered Institute of Tax reports that Burnham called for a flat 10% levy on all estates to help fund free social care in 2009, so this is another change that might come to fruition.

Property and land taxes

Having previously championed the idea of reforming Council Tax and rethinking Stamp Duty, Burnham has ruled out pursuing the idea, at least for the upcoming Budget.

While he continues to advocate for a proportional property tax, he’s also been vocal about introducing a Land Value Tax – based purely on the value of the land itself.

According to the Chartered Institute of Tax, Burnham previously described the proposition as “a very productive form of taxation because you make sure land is used for good, productive purposes, and if people are sitting on it and hoarding it, they get taxed and that money can come back and be redistributed.” 

As an alternative to Stamp Duty, there’s talk of introducing a flat-rate charge on the value of properties. Originally proposed by the Fairer Share Campaign, the rate being suggested is 0.48%, while owners of second homes and empty properties would pay 0.96%.

There have also been reports that the so-called “mansion tax” threshold may be reduced from £2 million to £1.5 million. The High Value Council Tax Surcharge was announced by former chancellor Rachel Reeves in the 2025 Autumn Budget and is currently due to come into force in April 2028.

It’s impossible to rule out a separate wealth tax

Tax Justice UK has spent several years campaigning for an extra 2% charge on estates worth more than £10 million, and Andy Burnham hasn’t vetoed the suggestion.

In fact, speaking to Gary Lineker on his Goalhanger podcast earlier this month, Burnham hinted that high net worth individuals may be asked to pay “a little more”.

To give some additional perspective, academics at King’s College London and the Paris School of Economics have forecast that charging an extra 2% tax on the richest UK households – specifically, those with more than £100 million (thought to be fewer than 10,000 households) – would raise £10.4 billion in 2026 alone.

Get in touch

Whatever decisions are announced in the coming weeks, and in the Budget on Wednesday 28 October, we’re here to help you navigate the changes and ensure you continue to make the most of tax-saving opportunities.

If you’re concerned about how Andy Burnham and his new cabinet could affect you and your finances, please get in touch. We can help you review your financial plan so you can prepare for any changes and continue building wealth for the future.

Email [email protected] or call us on 0161 8080200.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor. 

The Financial Conduct Authority does not regulate tax advice.