Andy Burnham has said he could not rule out raising taxes after he’s made Prime Minister. Burnham previously pledged to stick with Labour’s manifesto promise not to raise VAT, income tax or National Insurance, leaving the equalisation of GCT with income tax as a likely move to raise more funds. His admission came as the Organisation for Economic Co-operation and Development (OECD) warned Britain’s tax burden was already too high. The Labour Government has raised almost £70bn in tax to fund higher spending on the NHS, welfare and public sector pay, the Paris-based organisation said, with income tax raised by stealth. The OECD warned that raising national insurance again would hurt the jobs market, suggesting a hike in VAT would be the “most prudent” way to limit the damage to the economy. Labour is engaged in a “risky” strategy of state spending to drive growth in order to offset the adverse impact of high taxes, the OECD added.

The number of over-65s paying income tax will reach 10m this year, driven by a freeze on tax thresholds and rising state pensions. According to HM Revenue & Customs, 9.6m pensioners are expected to pay tax, up from 7.13m last year. The tax-free allowance has remained at £12,570 since 2021, while the state pension has increased annually due to the triple lock. Tim Stovold from Moore Kingston Smith noted that this “fiscal drag” allows the Government to collect more revenue without raising tax rates. Steve Webb, a former pensions minister, called for a comprehensive review of the tax system for pensioners.

Shabana Mahmood is set to become Britain’s next UK Chancellor, Labour sources have said. The Home Secretary is said to be “nailed down” to take over from Rachel Reeves at the Treasury following speculation that Ed Miliband, the Energy Secretary, could be given the role. That spooked markets and worried many Labour MPs, who argue his zealous pursuit of net zero has harmed the economy. Miliband may now be made Foreign Secretary, according to reports. The yield on 10-year UK gilts fell from 4.97% to 4.94% on news Mahmood would be Chancellor.

The UK is allowing Chinese companies to list securities in London using financial statements audited to Chinese standards, bypassing international audit norms. The change, effective from September, aims to attract more international investment. The Financial Reporting Council (FRC) announced the decision following a request from the UK Government to revise third country auditor policies. The move comes despite previous concerns about the equivalence of Chinese standards to international ones.

The British Retail Consortium has urged Prime Minister-designate Andy Burnham to back the retail sector through lower business costs and greater support for youth employment. The trade body is calling for cuts to business rates, a reversal of recent increases to employers’ National Insurance contributions, and the creation of a joint taskforce to help more young people into work. It argues that rising employment costs and taxes are limiting investment, recruitment and high street growth.

Nikhil Rathi, the chief executive of the Financial Conduct Authority (FCA), expressed concern about the claims management market during a Treasury Committee meeting on the regulator’s motor finance redress scheme. He accused lenders of downplaying consumer harm and claims firms of prioritising profit. The FCA’s £9bn motor finance redress scheme faces legal challenges with parts of the program suspended earlier this month due to the upcoming courtroom battle. Rathi went on to back calls for larger claims management companies to be subject to money laundering registration.

Labour plans to expand equal value pay claims to enable workers to sue for race and disability discrimination. The move marks a significant shift in the legal landscape for equal pay, which lets staff bring claims against their employers for discrimination if they are paid less than those in similar jobs. Equal pay claims have already effectively bankrupted Birmingham City Council and led to lawsuits against Asda and Next, which could cost the retailers £1.2bn and £30m, respectively. Commenting on the plans, Claire Coutinho, the shadow minister for equalities, said: “All this will do is cost taxpayers and consumers more, and encourage divisive identity politics in the workplace.”

Labour plans to advance the state pension age rise to 68 by 2037, affecting around 5m workers aged 49 to 55. The Office for Budget Responsibility (OBR) confirmed the change, which will require these individuals to work an additional year, costing them approximately £12,500. The Treasury noted that this plan links back to a review published in 2017. But it still needs to be legislated for. Paul Johnson, the former head of the Institute for Fiscal Studies, commented: “Current legislation is that the pension age will not rise until the mid-2040s. If it is the Government’s firm intention that it should rise sooner than that, they need to say so publicly and get on with legislation – and fast.”

Average rents across Britain have reached new record highs after the number of homes available to rent fell for the first time in four years, according to Rightmove. Outside London, advertised rents rose 2.3% over the past year to £1,397 a month, while London rents increased 2.9% to £2,791. Rightmove said the decline in rental supply, particularly in London, has driven prices higher.

Andrew Bailey, the Governor of the Bank of England, has said he does not regret meeting Nigel Farage to discuss cryptocurrency regulation last September. He acknowledged that had the Bank known about the £5m donation from crypto investor Christopher Harborne, he might have delayed the meeting. Bailey described the exchange as “perfectly polite” but noted Farage’s clear stance against the Bank’s plans to limit stablecoin ownership, which has since changed following a consultation.