Key Points
- Science and innovation minister Chris McDonald has been emphatic that the new cost-of-living measures of Andy Burnham will not rely on additional tax rises, but instead be paid for from existing Whitehall spending.
- Mr McDonald would not rule out a wealth tax in the autumn Budget, stating that it is a decision for the Chancellor to make.
- Mr Burnham started a cost-of-living tour on Monday, promising people struggling with rising costs “everyday fixes.
- The Government has said that it will take “aggressive steps” to tackle “subscription traps” and “tricky” discount pricing.
- Earlier, it was reported that Mr Burnham was having difficulty convincing Lord O’Neill of Gatley, a former Treasury minister and ex-Goldman Sachs economist, to join his Government, among other issues, due to worries about the imposition of wealth taxes.
- In the past, Mr Burnham has also campaigned for the replacement of council tax and stamp duty with a new tax on property, which could bring an additional £7.5 billion into the pockets of the capital’s taxpayers.
- He has minimized the chances of major property tax changes in the near future, but not excluded the possibility of property tax changes in the future or the Budget.
- The Prime Minister has indicated he could impose new taxes on higher income earners, possibly on the basis of the increased threshold of £12,570 for income tax, to pay for spending or tax relief for lower income earners.
Westminster (Britain Today News) August 10, 2026 — A government minister has moved to calm speculation over new wealth taxes, insisting that Andy Burnham’s latest wave of cost-of-living policies will be paid for from money already allocated within departmental budgets, rather than through new levies on the wealthy.
What Has Chris McDonald Said About Funding the New Measures?
Science and innovation minister Chris McDonald stated that the Government was re-prioritising existing schemes to pay for the new measures, rather than raising taxes. Speaking on the media round, he said:
“In the period that we’re in now, the policies that are being announced are costed within departmental budgets.”
His comments came as the Government confirmed it was speeding up action to crack down on so-called “subscription traps” and misleading discount pricing, part of a broader package aimed at easing pressure on household finances.
Has the Minister Ruled Out a Wealth Tax in the Budget?
No. Despite being repeatedly pressed on the point, Mr McDonald declined to rule out wealth-related tax rises, such as an increase to capital gains tax, in the autumn Budget. He maintained that such decisions were a matter for the Budget process itself, rather than something to be pre-empted during the current announcements.
Why Did Andy Burnham Launch a Cost-of-Living Tour?
Mr Burnham began the tour on Monday, pledging what he described as “everyday fixes” to help households facing rising bills. The tour forms part of a wider push by the Prime Minister to be seen addressing the cost-of-living crisis directly, ahead of tougher decisions expected later in the year.
Is Andy Burnham Struggling to Recruit a Key Economic Adviser?
According to reports, Mr Burnham is finding it difficult to persuade Lord O’Neill of Gatley, a former Treasury minister and ex-Goldman Sachs economist, to take up a role within his Government. The peer is understood to have reservations about the prospect of new wealth taxes and is also said to want to continue his existing business interests, factors reportedly complicating the appointment.
Could Council Tax and Stamp Duty Be Replaced?
Mr Burnham has previously thrown his weight behind proposals to scrap council tax and stamp duty in favour of a new property tax. Analysis has suggested such a change could add around £7.5 billion to London’s overall tax bill, given the capital’s higher property values.
Has the Prime Minister Ruled Out Major Property Tax Reform?
Not entirely. Mr Burnham has sought to play down suggestions that sweeping reform is imminent, saying:
“It’s just not the case that we are bringing forward plans, on that scale, at this moment in time.”
However, this falls short of a firm denial that significant changes to property taxation could feature in the autumn Budget or in future years.
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Will Income Tax Thresholds Rise Under Burnham’s Government?
The Prime Minister has signalled that he may look to raise taxes on higher earners to help fund increased public spending or to deliver tax cuts for those on lower incomes. Among the options reportedly under consideration is raising the £12,570 threshold at which people begin paying income tax, a move that would primarily benefit lower earners while placing more of the tax burden elsewhere.
What Happens Next?
Attention now turns to the autumn Budget, where the Government is expected to set out its full tax and spending plans. Until then, ministers are likely to face continued questioning over whether wealth taxes, property tax reform, or threshold changes will form part of the package — questions Mr McDonald and other government figures have so far declined to answer definitively.
Downing Street has not indicated a firm date for when further details will be confirmed. Until the Budget itself, speculation over the shape of Mr Burnham’s tax policy looks set to continue.
