Burnham pulls back on suggestion to increase tax-free personal allowance
UK Prime Minister Andy Burnham has clarified that he is not currently committing to changes regarding the frozen tax-free personal allowance. While acknowledging public frustration, he emphasized the need for fiscal discipline and adherence to existing manifesto promises during the upcoming Budget.
Why it matters
The decision impacts millions of UK taxpayers who are facing increased tax burdens due to fiscal drag, highlighting the tension between campaign promises and economic reality.
Image source, EPA By Harry Farley , Political correspondent and Kate Whannel , Political reporter Published 22 July 2026, 02:43 BST Updated 2 hours ago Andy Burnham has said he is not making an immediate "commitment" to changing the tax-free personal allowance but added that it could be considered at the Budget.
The £12,570 threshold has been frozen since 2021, resulting in more people being dragged into paying income tax as earnings increase.
Burnham told the Times over the weekend that the "frustration about the personal allowance" he had heard while campaigning in the Makerfield by-election was "lodged in my mind".
The prime minister then told reporters on Monday that "all of this will be looked at" in the next Budget but conceded any change would be expensive and "difficult given the financial circumstances in which we find ourselves".
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