
Andy Burnham is in a tight spot but a sales tax won’t save him (Image: Getty)
Labour is having kittens over what Healey is going to announce on October 28. How the Budget lands with the public could make or break Andy Burnham’s strategy, which is to generate a bit of optimism, then call a snap election to take advantage of Zack Polanski’s Green Party meltdown and the Tory-Reform split on the right. There’s a huge amount at stake.
We all know what Burnham would like Healey to do. Hike more taxes, borrow more money, then chuck the lot at voter-friendly pledges, such as building council houses, solving social care and maybe even buying some bullets for the army to show Vladimir Putin we mean business. But Healey can’t do that. He can’t do anything.
When the Cabinet assembles these days, it’s a glum affair, as Healey kills the post-Makerfield feelgood factor by banging on and on about dreary old “fiscal discipline”. He knows Labour can’t keep tapping up taxpayers, and we definitely can’t keep tapping up the bond market. Which makes ministers wonder why they joined the Labour Party in the first place. If they can’t go on a spree, they might as well be Tories.
Healey is reluctant to launch a third Labour tax blitz, having seen what the first two did to Rachel Reeves‘s career trajectory. Reform UK has warned he’s lining up a £30billion “sucker punch”, and he doesn’t want that on his CV. But Labour still demands he raises more money, and he has to oblige.
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Options include slapping a bigger windfall tax on banks and oil giants, unleashing new property levies and hiking capital gains tax. Both could backfire, by driving business away. Now left-wing think tank the Institute for Public Policy Research, which has close links to Labour, has had a new brainwave. It’s urging Healey to slap a brand new targeted 2% sales tax on online purchases. It reckons this could raise £1.5billion a year.
Many people would like the look of that. Isn’t time greedy US tech platforms such as Amazon paid their share? They’re a key reason why your high street is boarded-up, although not the only one. Traditional retailers pay business rates on their premises, which online-only rivals largely escape. The tax could fund business rate cuts for pubs, shops, hotels, reviving high streets.
But there are downsides. Bosses at UK retailers like John Lewis and Marks & Spencer’s are worried because they sell plenty of stuff online too. An online sales tax could punish the very retailers it’s supposed to help. It could hit small businesses too.
There’s another issue. Who pays? Ultimately, you will. Retailers could absorb some of the cost, but with profit margins already tight, most will simply pass the tax onto shoppers.
The tax will strike every time you buy anything online. Just open your laptop, scroll on your phone, click Buy and bam! HMRC wins, you lose.
There’s another problem. There is zero chance this tax will stop at 2%. Like so many other levies, once it’s in place, it’ll become yet another stealthy way for cash-strapped chancellors to raise a bit more cash come Budget day, hoping that we won’t really notice. And with this one you don’t even have to leave the house.
Andy Burnham Is So Desperate He Could Start Taxing Us Before We’ve Even Left the House
Andy Burnham’s political ambitions and his approach to Britain’s economic challenges have become a subject of growing debate, particularly among critics who fear that new taxes and additional charges could place an even greater burden on ordinary households. The suggestion that people might be taxed before they have even left the house is deliberately provocative, but it captures a wider frustration felt by many taxpayers: the belief that government is increasingly looking for new ways to raise revenue while families struggle to make ends meet.
For millions of people across Britain, the cost of living remains a daily concern. Housing, food, energy, transport and childcare can consume a substantial proportion of household income. Against that backdrop, any discussion of additional taxation is likely to attract intense scrutiny. People want to know not only how much they are expected to contribute, but also what they will receive in return.
Burnham, the Mayor of Greater Manchester, has built much of his public profile around regional investment, public transport, local services and the argument that national policy should do more for communities outside London. Supporters see that agenda as an attempt to address long-standing inequalities. Critics, however, question whether ambitious spending programmes can be delivered without placing further pressure on taxpayers.
The central issue is not simply whether taxes should rise or fall. It is whether political leaders can demonstrate that public money is being spent effectively and that any additional financial demands are justified.
The Taxpayer Is Already Under Pressure
For many working households, there is little room left in the monthly budget. Rent or mortgage payments arrive alongside utility bills, food shopping, insurance and travel expenses. Even a modest increase in recurring costs can force families to reconsider their spending.
People who work hard and pay their taxes may reasonably ask why they should be expected to contribute more when their own living standards feel increasingly uncertain. For some, the frustration is intensified by the perception that public institutions are not always delivering the quality of service they promise.
Waiting lists, pressure on local services, transport disruption and concerns about the condition of public infrastructure all contribute to a difficult political atmosphere. Taxpayers want to see improvements that they can identify in their everyday lives, rather than hearing repeated announcements about new programmes and long-term strategies.
This is the environment in which Burnham’s proposals and public statements are likely to be judged. Any suggestion of additional charges can become politically contentious if residents believe that they have already paid a considerable amount without seeing sufficient results.
Yet the debate also requires an important distinction. Not every proposal associated with local government necessarily involves a new tax, and not every criticism of taxation accurately describes the policy being discussed. Specific proposals need to be examined on their details, including who would pay, how much they would pay and how the money would be used.
Without that information, dramatic claims can generate anger without helping people understand the actual financial consequences.
Ambitious Plans Need a Clear Financial Explanation
Burnham has frequently advocated greater investment in Greater Manchester and stronger powers for regional leaders. Supporters argue that local authorities need the resources and flexibility to improve transport links, regenerate town centres and strengthen public services.
These objectives are not inherently controversial. Reliable public transport can help people reach work, while investment in neglected neighbourhoods can support local businesses and create opportunities. Effective public services can also reduce costs elsewhere in the long term.
The difficulty comes when ambitious objectives are presented without a convincing explanation of how they will be financed.
Every public spending commitment requires money. Governments and local authorities can draw on different sources, including existing budgets, grants, borrowing within legal limits, fares, fees and taxation. Each option has consequences, and none should be treated as cost-free.
Borrowing may spread the cost of major infrastructure over time, but it creates future financial obligations. Increasing fares can place pressure on commuters. Reducing other spending may mean that services lose funding. Raising taxes transfers more of the immediate cost to households and businesses.
Responsible political leadership requires an honest assessment of these trade-offs.
If Burnham wants residents to support a more ambitious programme of regional investment, he must make the financial case clearly. Which projects are essential? What will they cost? How will the benefits be measured? Which groups will pay? And what protections will exist for people on lower incomes?
Those are more useful questions than simply trading accusations about political desperation.
The Risk of Making Ordinary Life More Expensive
One reason taxation attracts such strong reactions is that people rarely experience it as an abstract economic concept. They experience it through their weekly budgets.
A worker who already spends a significant amount commuting may be particularly sensitive to higher transport costs. A small business owner may worry that additional charges will make it harder to hire staff or remain competitive. A family saving for a home may fear that rising expenses will push its plans further out of reach.
The cumulative effect of multiple charges can matter as much as any individual measure. Even when each increase appears manageable on its own, households may struggle when several costs rise at the same time.
This is why proposals that affect travel, parking, housing or everyday services deserve careful scrutiny. Policymakers should consider not only the amount of revenue a measure could generate, but also its wider economic effects.
Could it discourage people from travelling to work? Would it affect businesses in town centres? Could the burden fall disproportionately on residents who have few alternatives? Would exemptions or discounts be available to people who need them most?
A policy that raises money but creates unnecessary hardship may deliver disappointing results. Conversely, a carefully designed measure that funds a demonstrably useful service could receive public support, even if it involves a financial contribution.
The decisive factor is often whether people believe the arrangement is fair.
Who Benefits From the Money Raised?
Taxation is not only about the amount collected. It is also about the quality of the services funded by that money.
Residents may be more willing to accept a financial contribution if they can see cleaner streets, safer public spaces, dependable transport and better-maintained infrastructure. They are likely to be less enthusiastic if the money disappears into complicated administrative structures or programmes whose results are difficult to measure.
For Burnham, this creates a challenge that extends beyond announcing new investment. He must explain how proposed spending would improve the lives of Greater Manchester residents and how the public could hold decision-makers accountable.
Clear targets would help. Transport projects could be assessed through reliability, journey times, affordability and passenger numbers. Regeneration schemes could be judged by the use of public spaces, business activity and employment opportunities. Public services could be evaluated against measurable improvements in access and quality.
Transparency also matters when projects run over budget or fail to deliver their expected benefits. Residents should not have to rely on political assurances alone. They should be able to examine the evidence and understand what went wrong.
This principle applies to politicians of every party. The public purse belongs to the public, and those responsible for spending it should be prepared to explain their decisions.
Is There Another Way to Fund Local Priorities?
Critics of higher taxation often argue that governments should first examine existing expenditure, eliminate waste and improve efficiency. There is a reasonable case for demanding that assessment before asking households to contribute more.
However, efficiency savings should not be treated as an unlimited source of funding. Some services already face significant demand, and cuts that appear straightforward on paper may create larger costs elsewhere. A reduction in preventative services, for example, can leave public authorities dealing with more expensive problems later.
The real task is to distinguish necessary spending from ineffective spending and to make difficult choices openly.
Local leaders can review procurement arrangements, assess whether programmes achieve their objectives, coordinate services more effectively and reconsider projects that no longer offer value for money. They can also seek partnerships with businesses and other public bodies where appropriate.
But these measures need credible evidence. Simply promising to eliminate waste does not guarantee that sufficient savings will be found. Equally, declaring that higher taxes are unavoidable does not remove the responsibility to investigate alternatives.
Residents deserve a detailed comparison of the available options, including the costs and disadvantages of each.
Political Ambition and Public Trust
Burnham’s national profile means that decisions and proposals associated with him are likely to be interpreted through a wider political lens. Supporters may view his emphasis on regional investment as evidence that he understands the pressures facing communities beyond Westminster. Opponents may see the same agenda as a warning that new spending commitments could eventually translate into higher costs for taxpayers.
Both interpretations need to be tested against specific policies rather than assumptions about his motives.
Political ambition is not, by itself, evidence that a policy is misguided. Nor does a promise to improve public services automatically prove that the financial consequences have been properly considered.
The important question is whether a politician can reconcile promises with practical limits. Voters are entitled to expect an explanation of what can realistically be delivered, how much it will cost and what compromises may be necessary.
They are also entitled to challenge proposals that appear unfair or poorly justified. Such scrutiny is not hostility towards public services. It is a normal part of democratic accountability.
If Burnham hopes to persuade sceptical taxpayers, he will need more than broad commitments to investment and growth. He will need to show how the benefits will be distributed, how the costs will be controlled and why his approach offers better value than the alternatives.
The Public Wants Results, Not Endless Financial Demands
The suggestion that Burnham might tax people before they have even left their homes is a sharp political exaggeration, not a description of a verified policy. Nevertheless, the image reflects a genuine question at the heart of the taxation debate: how much more can ordinary people reasonably be expected to pay?
The answer cannot be determined by slogans alone. It depends on household circumstances, the services being funded, the fairness of the proposed system and the results that taxpayers can expect.
Britain needs functioning public services, reliable infrastructure and economic policies that support opportunity. Achieving those goals requires resources. But it also requires discipline, transparency and a willingness to acknowledge that public money is limited.
Burnham and other political leaders should therefore be prepared to explain their financial plans in practical terms. If additional charges are proposed, the public should be told precisely what they are, who would pay them and why they are necessary. If existing resources can be used more effectively, that possibility should be explored before new burdens are imposed.
Ultimately, the test of any political programme is not how ambitious it sounds at a conference or how forcefully it is defended in an interview. It is whether it improves people’s lives without imposing unjustified costs.
For households already watching every pound, that distinction is crucial. They do not want financial surprises, vague promises or policies whose consequences emerge only after the decisions have been made. They want a fair system, dependable services and evidence that their contributions are being used wisely.
That is the standard Burnham, like every other public figure responsible for spending decisions, must meet. Taxpayers are not simply a source of revenue. They are the people whose work supports the economy and whose money keeps public institutions operating.
Any leader who asks them to contribute more must be ready to explain, clearly and convincingly, what they will get in return.
