Andy Burnham
Who is Andy Burnham, and why does his view on IHT matter now?
Andy Burnham, the outgoing Mayor of Greater Manchester, has become the dominant figure in British politics in recent weeks. Following poor results for Labour in the May 2026 local elections and mounting pressure on Keir Starmer’s leadership, Burnham returned to the House of Commons via the Makerfield by-election on 18 June 2026. Four days later, Starmer announced his resignation as Labour leader and Prime Minister, triggering a leadership contest that Burnham is widely expected to win, potentially without a serious challenger.
As of early July 2026, nominations for the Labour leadership are due to open on 9 July, with the contest expected to conclude before the summer recess. Starmer remains Prime Minister until a successor is chosen. Burnham has not yet taken office and has not published a formal tax manifesto, so everything below should be read as a picture built from speeches, interviews and reported briefings rather than confirmed government policy. This is exactly why our new “People” series exists: to track what those approaching power have said about IHT, long before any of it becomes law, so readers can follow the direction of travel rather than be surprised by it.
What has Andy Burnham actually said about Inheritance Tax?
Burnham’s public record on IHT stretches back further than his current leadership bid, and it is worth separating his older, more fully-formed proposals from the more cautious signals he has given since becoming a prime ministerial contender.
- The 2009-10 “care levy” proposal: As Health Secretary under Gordon Brown, Burnham floated a National Care Service funded in part by a flat levy of around 10% applied to estates on death, on top of existing Inheritance Tax, to help pay for free social care. This was widely labelled a “death tax” by opponents at the time and was never adopted. Commentators covering his current leadership campaign note that this specific proposal has not been repeated since he emerged as a prime ministerial candidate, though it gives a strong steer on his underlying instinct that wealth passing on death is a legitimate and relatively fair source of revenue for social care.
- Openness to trading IHT for lifetime wealth taxes: In past public comments, Burnham has indicated he would be willing to see Inheritance Tax abolished altogether, provided this was balanced by properly taxing wealth and assets during a person’s lifetime rather than only at death. This reflects a recurring theme in his economic thinking: a belief that the UK system currently taxes income from work more heavily than it taxes assets, land and wealth.
- Farmers’ and business reliefs: Since becoming a leadership contender, Burnham has been reported as willing to “look again” at the current government’s restriction of Inheritance Tax reliefs for farmers, and by extension the equivalent changes affecting business property. These reliefs (Agricultural Property Relief and Business Property Relief) are already being curtailed by a £2.5 million combined cap from April 2026 under existing policy; Burnham’s comments suggest he is at least open to revisiting how far that policy goes, rather than confirming any specific reversal.
- Allies pushing for the CGT “uplift on death” to be scrapped: Reports in late June and early July 2026 suggest that figures close to Burnham, including Cabinet ally Louise Haigh, have been examining a review of the Capital Gains Tax uplift that currently applies when someone inherits an asset. Haigh has argued that any wider review of the tax system should, at a minimum, look at reforming this uplift, and has separately described the present Inheritance Tax system as raising fair questions about intergenerational fairness. Removing the uplift would mean beneficiaries inherit assets at their original purchase cost rather than at the value on the date of death, so a later sale could trigger a much larger Capital Gains Tax bill than under the current rules. Because this is being discussed alongside, not instead of, Inheritance Tax, some commentators have raised the possibility of certain estates facing both taxes on the same asset.
- A possible flat-rate replacement for IHT: Separately, some coverage of Burnham’s broader tax thinking has raised the idea of scrapping Inheritance Tax in its current form entirely and replacing it with a flat-rate care levy applied more broadly across estates, reviving the spirit of his 2009-10 proposal. Analysts covering this have cautioned that such a change might not reduce what larger estates ultimately pay; it could simply change the mechanism.
What Burnham has ruled out or downplayed
To keep this balanced, it’s worth being clear about what Burnham has not proposed. He has committed to holding the 2024 Labour manifesto pledge not to raise the headline rates of Income Tax, VAT or employee National Insurance during this Parliament, and has stuck to the government’s existing fiscal rules on borrowing. He has not, at the time of writing, put forward a general wealth tax, and a full policy speech setting out his economic vision on 29 June 2026 was notably light on tax detail beyond a commitment to business rates reform for high streets, pubs and music venues. In short, the picture on IHT specifically remains a set of signals and reported internal discussions rather than a firm plan.
What this could mean for your IHT planning
It is far too early to make any changes to your estate plan on the strength of speculation about a leadership contest that has not yet concluded. However, the direction of travel is worth understanding so that you are not caught off guard if any of these ideas do progress into government policy. Broadly, the themes to watch are:
- Possible further tightening of Business and Agricultural Property Relief, or alternatively some softening of the reliefs already announced for April 2026, depending on how a review lands.
- A possible review of the Capital Gains Tax uplift on death, which would primarily affect how much CGT beneficiaries pay when they later sell an inherited asset, rather than the IHT bill itself.
- A longer-term possibility, not currently an active proposal, of Inheritance Tax being reshaped into a broader levy linked to funding social care, rather than being abolished outright.
- No indication of any change to the nil-rate band, residence nil-rate band, or spousal exemption at this stage.
Our view: don’t plan around speculation, but do stay informed
As with any period of political transition, the temptation is either to panic or to ignore the noise entirely. Neither is quite right. Estates that are already close to a major decision, such as a business sale, a significant gift, or restructuring how agricultural or business assets are held, may want to keep a closer eye on developments over the coming months, since timing can matter if reliefs are tightened further. For most people, however, the sensible approach is the same as always: keep your will up to date, understand your current IHT position under today’s rules, and revisit your plan as and when actual policy, rather than speculation, is confirmed.
This article reflects publicly reported statements and analysis as of early July 2026. Andy Burnham has not yet been confirmed as Labour leader or Prime Minister, and none of the ideas discussed above are current government policy. We will update this article as the leadership contest concludes and, if applicable, as any new government sets out its Budget plans.
We always recommend speaking to a qualified solicitor or financial adviser before making decisions based on anticipated tax changes, since acting too early on proposals that never become law can sometimes be as costly as not planning at all.