Burnham pulls back on suggestion to increase income tax allowance
The new prime minister previously said voters were frustrated over the freeze in tax-free personal allowance.
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Andy Burnham initially suggested addressing the freeze on the £12,570 tax-free personal allowance, citing voter frustration, but later pulled back, acknowledging any change would be costly and difficult given fiscal constraints. The Institute for Fiscal Studies estimates unfreezing the threshold could cost £8.5-9bn annually, and government sources said there are no short-term plans to alter the allowance. Burnham reaffirmed his commitment to Labour's manifesto pledge not to raise income tax rates, ruling out offsetting the cost through higher rates.