Andy Burnham Considers Tax and ISA Relief Ahead of Budget

Prime Minister Andy Burnham is reviewing potential tax relief and savings allowance changes ahead of the first fiscal statement and Budget to be delivered by him and Chancellor John Healey on October 28. The Civil Service Pensioners Alliance (CSPA) has urged the Prime Minister to increase the £12,570 HMRC personal tax-free allowance to protect state pensioners and low-income households from being drawn into the tax system.

Burnham, who succeeded Sir Keir Starmer last month, told The Times that he intends to bring a tangible improvement to households. He noted that he heard concerns regarding the allowance threshold while canvassing in Makerfield.

Separately, the Prime Minister may reconsider or scrap proposed restrictions to Individual Savings Account (ISA) allowances originally announced by former Chancellor Rachel Reeves in the Autumn Budget 2025. The current plan, set for April 2027, would reduce the annual flexible ISA allowance from £20,000 to £12,000, restricting the remaining £8,000 to investment-based accounts. While citizens aged 65 and over remain exempt, analysts suggest Burnham and Healey may reverse these rules in the upcoming budget to generate electoral goodwill following significant criticism of the policy.