What does a Burnham-led government mean for your money?

Image source, Getty Images By Kevin Peachey Cost of living correspondent Published 2 minutes ago Policies to give people more "breathing space" on the cost of living will be announced on Tuesday by Andy Burnham, in one of his first acts as prime minister. Many people, he has said, can't go out for a pint on a Friday, can't take the kids out, and can't go on holiday owing to the pressure on their finances. The cost of living has dominated people's lives in recent years, and - to some extent - our politics too. Easing that pressure hasn't been easy. So, if Burnham supports people with energy bills and the cost of transport, allows people to earn more before being taxed, and makes care and somewhere to live more affordable - he'll face tough choices on funding those moves and managing the trade-offs that come with them. Haven't we heard this before? The Prime Minister said every minute not talking about the cost of living was "a wasted minute". It is the the "number one focus", according to the chancellor. However, these words weren't spoken by the incoming PM and chancellor, but by Sir Keir Starmer and Rachel Reeves - and only in January this year. They removed £150 from a typical annual domestic energy bill in April, by cutting some levies and moving others onto taxation. But, those bills soon went up again , as did the cost of food and mortgages, owing to the impact of the US-Israeli strikes on Iran. Events can have an instant and extreme impact on the best-laid plans. "A more volatile world is a more expensive world," says Adam French, of the financial information service Moneyfacts. Will taxes go down (or up)? Burnham has hinted at allowing people to earn more before they start paying income tax, shifting the so-called personal allowance. Under current government policy, income tax and National Insurance thresholds have been frozen until April 2031 in England, Wales and Northern Ireland. That means that as you earn more, a greater proportion of your income is taxed. That's a big revenue raiser for the government, and partially reversing the policy would mean this money would have to be found from elsewhere, or borrowed. Burnham has also hinted at "asking for a little bit more" in tax from some people. Follow live: Andy Burnham speaks after being appointed prime minister by King A very quick guide to Andy Burnham Published 25 minutes ago Chris Mason: Burnham is fifth PM in four years - now he'll try to buck the trend Published 12 hours ago He will stick to the Labour manifesto of not raising the main three taxes - income tax, National Insurance and VAT. But we've already seen since the election that other taxes can be altered, such as inheritance tax changes affecting family farms, often bringing a vociferous response. Among the possibilities are: Replacing stamp duty and council tax with an alternative property tax Higher rates on capital gains tax, which you pay on the profit when selling assets such as property outside a primary home as well