Andy Burnham’s latest speech today points to a much broader economic direction than constitutional devolution alone, according to expert insight from across the industry. While much of the political commentary has focused on the transfer of powers away from Westminster, commentators suggest the real significance lies in the potential reshaping of UK tax and economic policy, with important implications for advisers and their clients.
What Andy Burnham’s speech could mean for client planning
“Whilst today’s headlines have centred on moving political power out of Westminster, the proposals go much further than devolution.
Andy Burnham in power would likely lead to a fundamental reshaping of how the UK economy is managed in a more interventionist manner, and that means some pretty significant implications for how investment is encouraged and how wealth is taxed.
It’s about much more than the location of government departments. Greater fiscal powers for regions could mean different approaches to taxation, investment incentives and economic policy across England.
That clearly creates opportunities for regions to compete and innovate, but at the same time risks adding complexity for businesses operating nationally if the framework is not carefully designed.
When it comes to individuals, Burnham appears to be leaning towards taxing wealth more heavily, including aligning capital gains tax more closely with income tax, replacing council tax and stamp duty with a proportional property or land value tax, and potentially reforming inheritance tax.
Whilst these ideas remain at an early stage, they do signal a willingness to revisit parts of the tax system that have remained largely unchanged for years, although we will definitely see some pushback from certain parts of the population.
The speech should be seen as part of a much broader economic programme rather than simply a constitutional reform designed to grab the media’s attention.
The key questions over the coming months will be how these proposals are funded, how regional powers interact with national tax policy, and whether the government can deliver greater local autonomy without creating additional complexity for businesses and taxpayers.”
Sean Bannister, Head of Tax, Edwin Coe LLP
“An assured and optimistic speech from Burnham, albeit light on detail. Most importantly for gilt investors, he underpinned his announcements with a renewed commitment to fiscal responsibility. This was supported by an ambition to reduce the UK’s welfare bill – a politically difficult topic which signals some willingness to take challenging decisions.
While the speech was growth-focused, these offsets should provide the gilt market with near-term reassurance that a Burnham government would be mindful of fiscal constraints as well as political priorities. With such a focus on investment and improvement spending, the re-affirmation of prudence was welcome at this relatively early stage.”
Alex Everett, Investment Director – Rates Management, at Aberdeen Investments
“There’s no shortage of ambition in Andy Burnham’s pitch, but markets will be scrutinising his plans for clues on how they could work in practice, and what they might mean for UK PLC.
From a personal finance perspective, there was plenty of style but little substance – likely by design, with the speech aimed as much at appealing to Labour members amid the race for No.10 as outlining an economic programme.
The agenda was broad, spanning decentralisation, business rates relief and council house building, while notably reaffirming a commitment to existing fiscal rules – a signal likely aimed at reassuring markets wary of upward pressure on borrowing costs. But the backdrop remains challenging: public finances are tight, headroom for additional spending is limited, and difficult trade-offs on welfare and defence remain unresolved.
That leaves a critical gap. The key question is not just what changes are being proposed, but how they will be paid for. For many of our clients, the central concern remains what the new government could mean for taxes.
The choice of chancellor will be just as important as the prime minister in shaping that outlook, setting the tone for both fiscal policy and market confidence. Until there is greater clarity, speculation is inevitable – but reacting to incomplete details risks misjudging the direction of travel. The numbers behind the narrative will ultimately matter most.”
Olly Cheng, Financial Planning Divisional Lead at Rathbones
“It is encouraging to hear Andy Burnham’s commitment to making Britain an ‘innovation nation.’ But if he is serious about delivering growth in every postcode, he must start with the people who create growth: entrepreneurs.
His speech touched on the importance of backing entrepreneurs, but the real test will be turning ambition into concrete policies that make it easier to start, scale and exit a business.
Every successful company begins with someone willing to take a risk, create jobs and invest in their community. Now it is time for the government to support those entrepreneurs at every step of their journey.”
Keith Griffiths, founder and CEO of The Entrepreneur Festival
“Propertymark welcomes ambitions that place housing at the heart of UK Government policy. Ensuring the right homes are built in the right places at the right time is essential to help meet the needs of an ever-growing population.
Alongside social and council housing, continued investment in homes for private ownership and in the private rented sector is also vital to ensure the needs of a diverse housing market are fully met and that the promise to deliver 1.5 million affordable and sustainable homes in England by 2029 is fulfilled.
At the same time, any major housing reform must be carefully scrutinised to ensure it achieves all intended outcomes. Greater local control could help support a more responsive overall decision-making process that better reflects regional housing needs moving forward.”
Nathan Emerson, CEO at Propertymark
