Andy Burnham, the newly appointed Prime Minister, faced criticism on Wednesday after shifting his position on raising the tax-free personal allowance, which has remained frozen at £12,570 since 2021. The change in stance drew accusations of inconsistency from opposition figures and raised concerns among advocacy groups representing pensioners.
Earlier this week, Burnham had suggested that increasing the threshold was under consideration, citing discussions during his campaign in the Makerfield by-election as a key reason. He described the personal allowance freeze as an issue frequently raised by voters. However, in subsequent remarks, Burnham clarified that no firm commitment has been made to adjust the allowance ahead of the upcoming Budget announcement.
“It was raised a lot but I then went on to say, ‘But we’ll have to look at it at the Budget alongside everything else’,” Burnham said. He emphasized a desire for honesty and trust in politics, asserting that any changes would be evaluated carefully and that there are no unfunded promises being made at this stage.
The move prompted swift reaction from Conservative politicians, with senior Tory figure Sir James Cleverly labeling Burnham “Mr Flip-Flop,” suggesting the Prime Minister’s approach reflects political uncertainty. “This is going to be a bumpy ride,” Cleverly commented.
Advocacy groups also weighed in, highlighting concerns about the financial pressures on older citizens. Dennis Reed, director of the Silver Voices organization, expressed disappointment, noting that more pensioners on modest incomes are now subject to income tax due to the frozen allowance. “Older people are beginning to wonder whether Andy Burnham will actually deliver cost-of-living relief for us,” Reed said, referencing earlier hopes that the freeze would be lifted to ease tax burdens on state pension recipients.
Meanwhile, Shadow Chancellor Sir Mel Stride criticized Burnham and the Labour Party’s fiscal strategy overall. He pointed to prior tax increases under Labour leadership to fund welfare programs and argued that Burnham lacks a concrete plan for government. “He’s not taking the hard choices because Labour MPs won’t get on top of welfare spending,” Stride asserted. “That means borrowing will increase and taxes will rise.”
As the Budget approaches, Burnham’s government faces mounting pressure to clarify its approach to taxation and spending, particularly amid ongoing concerns over cost-of-living challenges for pensioners and other vulnerable groups.
