Conservatives Press Burnham to Pledge No Tax Hikes Ahead of Budget

The Conservative Party has called on Prime Minister Andy Burnham to commit to no tax increases in the upcoming Budget, with shadow chancellor Andrew Griffith arguing that current rates are prompting young professionals to seek opportunities overseas. Speaking to the BBC prior to delivering his first major policy address, Griffith claimed that high taxation in the UK is causing talent to “seek their fortune” elsewhere.

Griffith declined to confirm whether the Conservatives would pledge to abolish inheritance tax if they form the next government. While acknowledging he would “love” to cut the levy, he emphasized that any such move must be properly funded. His comments come amid reports that the party may announce a promise to scrap the tax at its annual conference in October.

In response, Labour dismissed the Conservative stance, stating they would not accept “lectures” on the economy from a party whose former leader Liz Truss oversaw a disastrous mini-budget just last week. A Labour spokesperson highlighted that Chancellor John Healey is focused on providing relief to families and businesses, supporting British jobs, and adhering to strict fiscal rules.

The Chancellor is scheduled to present the Budget on 28 October, a decision made against a backdrop of rising inflation and volatile global energy prices. Trade unions, including the Unite union, are set to meet with Healey on Thursday to urge the government to reverse the freeze on tax thresholds, which they argue disproportionately affects lower-income workers.

Burnham has cautioned that the Budget will be “challenging” due to the ongoing conflict in the Middle East but insisted he is prepared to make difficult economic decisions. Griffith criticized the current administration for raising taxes at the last two Budgets, asserting that public finances are under significant strain. He also called for a pause on what he described as “job-destroying red tape,” citing Federation of Small Businesses estimates that tax compliance costs small enterprises £25bn annually and consumes an average of 44 hours per business each year.

To address regulatory burdens, the Conservatives have appointed Lord Mackinlay of Richborough and Robert Colvile to produce a report on reducing regulations for small businesses. Griffith outlined that the Conservatives would seek to balance the books by reforming the welfare system, reducing foreign aid spending, and cutting central Whitehall costs.

Debate over inheritance tax has also drawn attention from Reform UK. Treasury spokesman Robert Jenrick recently argued that eliminating the tax would primarily benefit a small number of wealthy families rather than the broader taxpayer base, describing it as a lower priority. However, Griffith pushed back against the characterization of inheritance tax as solely a levy on the wealthy, arguing that the richest individuals often structure their affairs to avoid the tax and that its removal would stimulate overall growth.