Economists have warned taxes will need to rise to fund new policies announced by Andy Burnham in his first days since entering No 10 .
The chancellor, John Healey, may be forced to raise taxes “significantly” to pay for the cost of living promises made by the prime minister, the Resolution Foundation, told the Telegraph.
Mr Burnham has announced a 20 per cent business rate cut for pubs, clubs and live music venues, a VAT cut to electricity bills and capped bus fares to £2 from January. The prime minister has also promised to fix social care and ease the cost of living.
The business rate cuts alone are expected to cost the government around £100m per year.
“Depending on the price tag for all these things, then it would have to be a significantly revenue-raising Budget to pay for some of those big-ticket items,” James Smith, the chief economist at the Resolution Foundation said.
John Healey wants to ‘lift pessimism’ about the British economy
The Independent’s political editor David Maddox reports:
Chancellor John Healey has vowed to “lift pessimism” about the British economy, help business and the City, and “meet our fiscal rules with a buffer against uncertainty”.
Speaking at Bloomberg, he said: “I’m just as concerned about the cost of business as I am about the cost of living.
“Tax, energy, supply chain costs, labour. I know businesses large and small have felt really squeezed.
“I will back you as your chancellor, I will back you in financial services, in technology, in retail, in all parts of the economy.
“We cannot do that without you, the wealth creators, the job creators.”
Rebecca Whittaker23 July 2026 08:29
Music Venue Trust calls for relief in Scotland, Wales and Northern Ireland
The cut in business rates has been welcomed by the Music Venue Trust, which acts to protect, secure and improve UK grassroots music venues, and called for the same relief to be offered across Scotland, Wales and Northern Ireland.
Chief executive Mark Davyd said: “MVT warmly welcomes this announcement from the government, and its recognition that grassroots music venues are essential to our local communities.
“The 20% additional reduction on Business Rates from April 2027 is an encouraging first step in a range of opportunities available to Andy Burnham’s new team to not just protect and secure live music, but begin to restore its central role at the heart of our towns and cities.
“There remain some issues of implementation of previous reliefs, and we will work with colleagues in government to ensure that all grassroots music venues in England are recognised and eligible.
“We call on Senedd, Holyrood, and the Northern Ireland Assembly to swiftly confirm they will match this much needed support through Barnett formula consequentials. Venues in Wales, Scotland and England must be confident of a level playing field of economic conditions for touring across the UK.
“Live music is an ecosystem, and we strongly urge the government to reconsider the limit to the eligibility criteria so that all live music spaces of all sizes qualify, supporting jobs, local economies and communities to access live music.”
Rebecca Whittaker23 July 2026 08:26
Minister confirms two of PC Harper’s killers qualify for early release this year
The Independent’s politics reporter Athena Stavrou reports:
A government minister has confirmed that as it stands, two of PC Harper’s killers will qualify for early release from prison in September.
Andy Burnham said he will review the early release scheme policy, after the widow of police officer Andrew Harper said on Wednesday that it is “deplorable” that two of his killers are being considered for early release under the government scheme.
On Thursday, chief secretary to the treasury Emma Reynolds said while she could guarantee the driver of the car in the case is not eligible for early release, she could not comment on the specifics of the other two involved.
Pushed on whether the two men qualify for early release in September, she told LBC: “As currently constituted, that’s my understanding.”
Rebecca Whittaker23 July 2026 08:23
Watch: Andy Burnham announces new £2 bus fare cap across England
Rebecca Whittaker23 July 2026 08:21
Minister refuses to be drawn on wealth tax
The Independent’s politics reporter Athena Stavrou reports:
A government minister has refused to be drawn into whether Andy Burnham’s government will consider a wealth tax, after more than 100 UK-based millionaires called on one to be introduced.
On Thursday, a group of millionaires, including Gary Lineker, signed a letter urging Mr Burnham to tax their wealth.Mr Burnham has previously signalled his intention to overhaul the tax system in order to fund his policy ambitions as prime minister.
On Thursday, chief secretary to the treasury Emma Reynolds said she would welcome Mr Lineker and other UK-based millionaires increasing the amount they pay into public coffers, but would not be drawn into whether the government will consider what they are asking for.
“Well, look, it’s day four of this new government, and obviously any major tax changes would be announced at a budget,” he said.
“I welcome the fact that people of good means are saying that they want to pay more. They can pay more.
“There is a link on gov.uk, but look, we have to look at tax policy in the round, and we only make major tax announcements at budgets.”
Rebecca Whittaker23 July 2026 08:20