- Andy Burnham has retracted earlier suggestions about increasing the £12,570 tax-free personal allowance as part of his strategy to address the cost of living crisis.
- The personal allowance has remained frozen since 2021, a policy that results in more individuals paying tax as their earnings rise due to inflation, a phenomenon known as fiscal drag.
- Burnham had previously told The Times that voter frustration regarding the frozen personal allowance, encountered during his campaigning in the Makerfield by-election, was a significant concern for him.
- On Monday, he indicated to reporters that while 'all of this will be looked at' in the upcoming budget, he recognised that any alteration would be costly and challenging given the current financial climate.
- Despite his earlier comments, allies of Mr Burnham have since informed the BBC that adjustments to the personal allowance are not included in his immediate proposals for tackling the cost of living.
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