{"text":[[{"start":9.65,"text":"Andy Burnham has backed away from a multibillion-pound move to increase the personal income tax allowance, as he told his first cabinet meeting: “We’ve got to show fiscal discipline.”"}],[{"start":21.65,"text":"The new UK prime minister had explored the feasibility of declaring an end to the five-year freeze of the £12,570 personal allowance, which he said was “a growing issue” for voters."}],[{"start":33.95,"text":"“There is not any commitment to do it,” said one ally of Burnham. “What he was saying is that people are feeling unheard.”"}],[{"start":41.300000000000004,"text":"His allies said income tax changes were not part of Burnham’s early cost of living plan, whose launch on Tuesday triggered a dispute over how the removal of value added tax on household electricity bills would be funded. "}],[{"start":55.75,"text":"Colleagues of the prime minister also ruled out a suggestion that a rise in the personal allowance might be funded by the restoration of a 50p top rate of income tax for the highest earners."}],[{"start":67.2,"text":"“He has made it clear he is sticking to the manifesto commitment not to raise rates of income tax, national insurance or VAT,” one ally said, noting that this explicitly ruled out any increase in the 45p “additional” tax rate applied to earnings above £125,140. "}],[{"start":86.15,"text":"Colleagues and Whitehall officials said that, before taking office on Monday, Burnham had explored making an early announcement on increasing the allowance but shied away because of the cost. Such a move could have taken effect at the start of the next tax year in April 2027. "}],[{"start":102.75,"text":"The cost of uprating the personal allowance by inflation in 2027-28, 2028-29 and 2029-30 would be £9.2bn in 2029-30, according to calculations from the Resolution Foundation think-tank. A single-year uplift in 2027-28 would cost £3.7bn. "}],[{"start":125.95,"text":"“It was a reasonable thing for him to ask about,” said one Burnham ally."}],[{"start":129.85,"text":"The prime minister told reporters on Monday that the freeze in the tax allowance was a big issue in the Makerfield by-election, where victory last month enabled the former Greater Manchester mayor’s return to parliament."}],[{"start":143.25,"text":"He said it would be looked at in the Budget but added: “Obviously it’s difficult, given the financial circumstances in which we find ourselves.” "}],[{"start":151.7,"text":"Burnham’s early focus on cutting the cost of living is instead focusing on energy bills and possibly bus fares."}],[{"start":158.35,"text":"There had been speculation that Burnham might also consider some kind of rent freeze to address living costs, but that has also been rejected by the prime minister’s allies."}],[{"start":168.79999999999998,"text":"Burnham’s commitment to fiscal discipline is already in the spotlight after he announced on Tuesday an £850mn plan to cut electricity bills this winter, which he said would be funded by axing a digital ID scheme."}],[{"start":182.45,"text":"But Darren Jones, former cabinet minister under Sir Keir Starmer who left the government on Monday, said the tax cut was “unfunded” because no money had been set aside for the digital ID programme."}],[{"start":194.54999999999998,"text":"To try to tackle the issue, Burnham allowed the cameras into his first cabinet meeting to show both him and chancellor John Healey stressing the need for “fiscal discipline”."}],[{"start":204.64999999999998,"text":"“We have got to show fiscal discipline, we have got to show our commitment to the fiscal rules is real,” Burnham told ministers, referring to a commitment inherited from former chancellor Rachel Reeves to balance day-to-day spending with taxation by 2029-30. "}],[{"start":220.74999999999997,"text":"The second fiscal rule requires the chancellor to get debt on a downward trajectory as a share of GDP by the same year."}],[{"start":228.39999999999998,"text":"Healey, whose appointment as finance minister surprised many of Burnham’s allies and Labour MPs, said “fiscal control is the first duty of any chancellor”. "}],[{"start":237.64999999999998,"text":"“It is the fiscal credibility that gets us economic stability, growth and national security,” he added. "}],[{"start":244.14999999999998,"text":"Downing Street said the decision to remove VAT from electricity bills would cut about £45 off a typical annual electricity bill. The move, planned only for this fiscal year at present, would cost roughly £850mn in 2026-27, based on estimated electricity prices."}],[{"start":262.4,"text":"It said this would be met by saving £1.8bn over the next three years by ending the digital ID scheme. "}],[{"start":270.29999999999995,"text":"Burnham has sought to avoid the mistake made by his predecessor Starmer in failing to act quickly after taking office, and has moved to show voters he has a plan to help them with their daily lives. "}],[{"start":282.4,"text":"He told his cabinet that he planned to run a “cost of living government” and urged his new ministerial team to “look for all possible ways” to help voters with the cost of living, in order to “take a little bit of pressure off people’s shoulders”."}],[{"start":295.29999999999995,"text":"Burnham added that the VAT cut “points the way for further measures we hope to take”."}],[{"start":301.04999999999995,"text":"“Any further action, including on funding for longer-term measures, will be taken at the Budget, and all decisions at that point will be funded and also consistent with the government’s fiscal rules,” the government said."}],[{"start":320.95,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1784681239_3532.mp3"}