Andy Burnham has reportedly shelved plans to tackle Britain’s massive welfare bill this year Budget – as his chancellor suggested October’s economic blueprint will include a ‘mansion tax’.
The Prime Minister is said to have postponed any changes to the creaking and bloated benefits system until next year, with aides saying he could only focus on “one big problem at a time”.
Two investigations into the problems facing the social security system will not be completed until shortly before the October 28 budget and he has decided to focus first on how to finance a boost in defense spending.
This despite loud calls to tighten social spending and channel money to the military.
At the same time, new Chancellor John Healey is said to have shelved plans to increase defense spending to 3 percent of GDP by 2030, despite stepping down as president. Lord Keir Starmer‘s Minister of Defense due to a lack of money for the armed forces.
Tory shadow work and pensions secretary Helen Whately said Labor was “challenging the welfare state”.
‘First Keir, now Andy. “All Labor MPs want is to raise taxes to spend more on benefits,” she said.
Mr Healey also indicated today that the Budget will include a new top tier of council tax which will hit large house owners.
Speaking to Sky News, he said the tax is ‘evolving’, adding: ‘Some people call it a mansion tax but this is a top rate that isn’t there at the moment and it will help make the system a bit fairer.
The Prime Minister is said to have postponed any changes to the creaking and bloated benefits system until next year, with aides saying he could only focus on “one big problem at a time”.
John Healey also indicated today that the Budget will include a new top tier of council tax which will hit large house owners.
‘Because at the moment there are people paying the same council tax on vastly different properties in different parts of the country. But if these kinds of decisions are relevant to the budget, I will table them in a few months.’
Ministers have admitted that valuers could carry out ‘internal inspections’ of homes to check whether they are worth more than the £2 million threshold.
Anyone who visits the HMRC The inspectors would be committing an offense punishable by a fine of up to £200.
The first one last week Tory Finance Minister was hotly tipped as Mr BurnhamThe country’s chief economic adviser rejected the role and called for a “sensible, realistic approach to social spending.”
Lord Jim O’Neill denied he had had any disagreement over policy with Mr Burnham, but said Britain must tackle social spending to reduce debt.
Current estimates say the government is spending around £1 billion a day on rising social security bills.
Reform’s finance spokesman Robert Jenrick said: ‘Andy Burnham is not a fresh start – he is just Labor continuity with a new face.
“The public faces the same high taxes, the same open borders and the same ever-increasing welfare bill.”
