Burnham’s 20% Rate Cut Spurs Tax-Rise Warnings Over £100 Million Annual Cost
Updated
Updated · The Independent · Jul 23
Burnham’s 20% Rate Cut Spurs Tax-Rise Warnings Over £100 Million Annual Cost
3 articles · Updated · The Independent · Jul 23
Summary
Economists warned Andy Burnham may need a significantly tax-raising Budget after days of cost-of-living pledges, including a 20% business-rate cut, lower VAT on electricity bills and a £2 bus-fare cap from January.
£100 million a year for the business-rate cut alone has no clear funding source, they said, raising doubts over how the wider package will be paid for.
Burnham insists the plans are fully funded, but former minister Darren Jones said the Digital ID scheme cited to finance the energy-bill VAT cut was itself unfunded.
Conservatives seized on that gap, with Mel Stride and Andrew Griffith saying the new government has yet to credibly explain any of the policies and warning more tax rises will follow.