Andy Burnham, who is expected to become UK Prime Minister later this month following his bid to lead the Labour Party, has indicated there is limited scope for adjustments to tax policy while maintaining key manifesto commitments.

In an interview with LBC, he suggested that business rates on warehouses could be increased as part of a broader effort to fund tax reductions for pubs and certain high-street businesses, aiming to support struggling retail and hospitality sectors.

However, he reaffirmed Labour’s 2024 general election pledges not to raise VAT, income tax, or national insurance, emphasising continuity and fiscal discipline.

Burnham also addressed concerns about public finances and governance, insisting he would not act in an “indisciplined” manner with government spending if he becomes Prime Minister.

He highlighted his experience as a former Treasury minister and Mayor of Greater Manchester, arguing that his record demonstrates financial responsibility.

He further acknowledged the scale of upcoming fiscal challenges, particularly the need to fund a significant increase in defence spending, estimated at £15bn, with an associated requirement to identify at least £4.7bn in departmental savings for the autumn Budget.

On welfare, Burnham rejected the idea of “crude cuts” to benefits, instead proposing structural reforms such as improved education pathways, greater support for technical qualifications, and expanded work placements for 16-year-olds.He also emphasised the importance of mental health support for people in work as part of efforts to reduce long-term welfare costs.Additionally, he confirmed that decisions regarding key Cabinet appointments, including the Chancellor, remain open.

Burnham also commented that it was too early to commit to a potential bank holiday if England were to win the World Cup, and outlined plans for a “No 10 North” office near Manchester as part of a decentralisation agenda.