Burnham says NO snap election… but leaves the door open for tax hikes

Andy Burnham raised fears on Monday he will hike taxes in the Budget after admitting the country is in a ‘challenging position’.

The Prime Minister said he would not be ‘unrealistic’ about the help he can offer households with the cost of living and would not ‘take risks’.

But he did claim he would ‘honour’ Labour‘s 2024 manifesto, which ruled out increasing National Insurance, income tax or VAT.

He also denied he would call a snap general election, despite some commentators suggesting he could take advantage of the ‘Burnham bounce’ in Labour’s poll ratings to win a fresh mandate and jettison Sir Keir Starmer‘s pledges. 

In a series of interviews in Ukraine, the PM said he had ‘clear plans’ that would restore hope.

But on Monday night Shadow Chancellor Sir Mel Stride said: ‘Andy Burnham became PM without a plan and has been unable to say where the money is coming from to pay for his commitments, so is now staring down the inevitable barrel of tax rises.

‘It doesn’t matter who is in charge, it is the Labour Party itself that’s the problem. As the welfare secretary [Pat McFadden] said, all they want is to raise taxes to fund more benefits.’ 

Mr Burnham was asked by ITV News if the public had to accept paying more in tax to tackle the big issues he has highlighted, including the housing crisis and social care.

On Monday evening, Shadow Chancellor Sir Mel Stride (pictured) said Mr Burnham ‘is now staring down the inevitable barrel of tax rises’

He replied: ‘No, they don’t necessarily have to accept that.’

When it was put to him that the hole in the defence budget needed to be filled with tax rises, the PM said he ‘won’t take risks with people’s jobs or their livelihoods’.

He added: ‘I will try to help them in whatever way I can, I have already done some things that will help them. I will do what I can but I won’t be unrealistic.

‘We are in a challenging position. Whatever I do will be carefully thought through, it will be funded and there will be more to come as we go into the autumn.’

In an interview with LBC he was again asked if the public should expect to pay more tax in the October Budget, and replied: ‘No… We have a manifesto, and I will honour that manifesto. I believe it’s possible to provide extra help for people with the cost of living by changing some of our priorities.’

He added: ‘Whether I will achieve everything I want to do, that’s a different matter. But people will be in no doubt about the direction in which I seek to take the country…a hopeful direction, a positive direction, a unifying one.’

Told that it would be easier to get a new mandate by calling an election, Mr Burnham replied: ‘I am ruling that out right in front of you.’