Burnham pulls back on suggestion to increase tax-free personal allowance
UK Prime Minister Andy Burnham has walked back suggestions that he would increase the tax-free personal allowance. Despite acknowledging public frustration, he cited fiscal discipline and the current economic climate as reasons for maintaining the status quo.
Why it matters
The decision highlights the tension between political campaign promises and the fiscal constraints facing the UK government.
Image source, EPA By Harry Farley , Political correspondent and Tabby Wilson Published 16 minutes ago Andy Burnham has pulled back from suggestions about increasing the tax-free personal allowance.
The £12,570 threshold has been frozen since 2021, resulting in more people being dragged into paying 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".
Those close to Burnham have since told BBC News that any changes to the personal allowance are not part of his initial plan to tackle the cost of living.
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