Kemi Badenoch, a senior Conservative figure, has warned that tax increases are likely amid Labour leader Andy Burnham’s series of costly policy pledges. Speaking in London, Badenoch urged Burnham, who became prime minister earlier this month, to avoid introducing new taxes by cutting welfare expenditure instead. She cautioned that his proposals, which have yet to be fully funded, may force a repetition of the financial turmoil seen under former Prime Minister Liz Truss in 2022.

Badenoch criticized what she described as Burnham’s inconsistent policy announcements, highlighting the rapid succession of expensive initiatives he has floated since taking office. These include establishing a national care service estimated to cost £18 billion, building council housing at levels last seen in the 1970s with a £13 billion price tag, and fluctuating statements on increasing the personal tax allowance. She said Burnham appears uncertain about his financial strategy and warned that these promises would demand significant funding.

Burnham has made a number of commitments aimed at addressing the cost of living crisis, totalling around £1.6 billion in spending, equivalent to roughly £25 million per hour. He has also signaled support for more ambitious plans such as creating a national social care system, constructing half a million new council houses, and re-nationalizing formerly privatized utilities including Thames Water. So far, Downing Street has not provided clear estimates on the overall costs of these proposals or explained how they will be financed.

One controversial funding source Burnham has raised is a 10 percent levy on all estates, a suggestion critics have labeled a "death tax." He is seeking cross-party backing for social care reform, but Badenoch firmly rejected this levy, arguing it would unfairly impact individuals who have made personal arrangements to cover their care costs.

In response to questions, Treasury Chief Secretary Emma Reynolds said the government does not intend to introduce tax increases in the immediate term, stating that the recent announcements can be funded without raising taxes. However, some within Burnham’s inner circle, including Neal Lawson, head of the left-wing pressure group Compass, have acknowledged that achieving the prime minister’s ambitious vision may require increased revenue generation.

Lawson, a long-time Burnham ally, suggested that the party’s longstanding manifesto pledges not to raise income tax, national insurance or VAT might need to be reconsidered. He argued that governments must be flexible when circumstances change and that breaking such commitments should be viewed pragmatically as part of responsible governance.

Meanwhile, Badenoch revealed that Burnham has not responded to her offer to assist in implementing welfare reductions opposed by Labour backbenchers. She cautioned that mounting spending without corresponding cuts or new revenue risks undermining economic stability, implying that tax increases are inevitable.