Tax raids on the middle classes are in Burnham's 10-year plan: Would-be PM to unveil Left-wing mission

By JASON GROVES, POLITICAL EDITOR Published: 22:46, 28 June 2026 | Updated: 22:46, 28 June 2026 Andy Burnham will on Monday set out his Left-wing plan for a decade in power, as he plots a tax raid on middle-class Southerners. The would-be prime minister will begin to reveal his plan for when Sir Keir Starmer is shoved aside next month. He is set to be given the keys to No 10 in a Labour 'coronation', in which the public will have no say.  But despite his lack of mandate, the former Greater Manchester mayor will demand ten years in power. Mr Burnham will put devolution at the heart of his programme, arguing that transferring powers and money to the North from Whitehall will help to generate 'good growth in every postcode'. This could include tax-raising powers for mayors as well as greater control over business rates and income taxes generated locally. But the plans, which are being worked on by prospective Chancellor Ed Miliband, are also likely to involve a string of new tax hikes that will fall disproportionately on better-off families in the South. While the self-styled 'King of the North' is not expected to set out detailed tax plans in a speech in Manchester on Monday, allies have suggested his programme could include a property tax that will punish those with more valuable homes, as well as an increase in capital gains tax and a new 'death tax'. Wannabe PM Andy Burnham is reportedly planning to put devolution at the heart of his agenda if he wins the keys to Downing Street  Energy Secretary Ed Miliband, who is understood to be pushing Mr Burnham to appoint him Chancellor, is also working on the plans  Mr Burnham has backed Labour's 'fiscal rules' but allies believe they can be exploited to borrow billions of pounds more.  Shadow Chancellor Sir Mel Stride branded the plans a 'disaster', adding: 'We are about to see what a real Left-wing government looks like.  'It's clear that Burnham will double down on the mistakes Starmer and Reeves have made.  'All the signs are that he has no ideas other than yet more borrowing, taxes and spending.' Mr Burnham will argue that investment in regional infrastructure and technical education could pay dividends by the mid-2030s.  He will claim the South could benefit in the long-run if regional economies in the North are given cash to get them growing. The Makerfield MP, who has yet to deliver his maiden speech in Parliament following his by-election win this month, will warn that Labour may need another decade in power to 'lift Britain back up to where it should be' and put living standards back on a rising path. His ascent will bring down the curtain on Sir Keir's troubled leadership just two years into his own ten-year plan for Britain's 'renewal'. Former Transport Secretary Louise Haigh (pictured in 2024), a key ally of Mr Burnham, has called for a 'redesign' of the tax system in Britain  Mr Burnham's ascent will bring down the curtain on Sir Keir's troubled leadership just two years into his own ten-year plan for Britain's 'renewal'. Pictured: The Prime Minister resigns He will portray himself as a 'circuit-breaker' following years of economic stagnation. In a symbolic move, Mr Burnham plans to base himself outside London for part of the time in a new 'No 10 North' in Manchester, where he was mayor for almost a decade. He is eyeing a potential tax raid on middle-class Southerners to fund his plans to devolve power and money to the North. Former transport secretary Louise Haigh, who is organising Mr Burnham's transition to government, said Britain's tax system is 'unfair'.  Writing in the Left-wing magazine Renewal, she called for a 'redesign' of the system, including moving towards the equalisation of rates for capital gains and income tax.  Ms Haigh, who was forced to resign from the Cabinet over a fraud conviction, also floated the idea of a 'property land tax' to supplement council tax. Mr Burnham's team is believed to be examining proposals from campaign group Fairer Share that suggest imposing an annual 0.48 per cent tax on all homes. While this would produce an average annual charge of around £748 in the North East, the equivalent bill in the South East would be £1,824, while in London it would be £2,660.  Meanwhile, rules that end capital gains liability at the point of death could be overturned in what critics have dubbed a 'death tax'. The newly elected Makerfield MP could be 'coronated' as soon as July 20 but he has not commented on whether he would call a snap election if he becomes Labour leader  Other plans in his manifesto include a programme of council-house building, resurrecting the HS2 link to Manchester, the revival of former industrial communities and 'public control' over utilities. Mr Burnham looks set to be handed the keys to No 10 on July 20, despite his mandate being limited to the 25,000 voters who backed him in Makerfield – equal to just 0.05 per cent of the electorate. Tory Party chairman Kevin Hollinrake said: 'Burnham's big idea is to shuffle power between politicians. Not fix the welfare system.  'Not cut taxes strangling families and business. Not fund the defence our country desperately needs.  'Just more devolution, more committees, more process. It's the politics of distraction from a Labour Party that is deliberately avoiding the questions that matter.' The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. 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