Andy Burnham, who is widely expected to take over as prime minister later this month, has said there is “some room” for movement on the tax.
In an interview with LBC, Burnham suggested that business rates on warehouses could be increased to make up for tax cuts for pubs and some high-street businesses.
But the newly elected Makerfield MP said he would stick to Labour’s promise in its general election manifesto in 2024 not to raise VAT, income tax or National Insurance.
He also defended his credibility on economic policy and insisted that he would not be “indisciplined” on public finances if he became Prime Minister.
Some on the left of the Labor Party have called for relaxing borrowing rules to allow for more public spending.
Burnham has faced criticism in the past for arguing, external The UK “needs to get past this thing of being stuck in the bond markets”, which governments use to borrow money to finance government spending.
Speaking to LBC presenter Andrew Marr, Burnham said finances in Greater Manchester were “pretty solid” when he was mayor – and pointed to his previous experience as Treasury minister in the last Labor government.
“I stand by the manifesto and the promises made in it,” Burnham said.
“So, let me be very clear about this, but there is some room for movement on tax in that manifesto.”
The pledge to help with business rates was made during his successful by-election campaign to become Makerfield’s MP last month.
Burnham said pubs, clubs and music venues would face a 20% cut, while smaller, independent hospitality, leisure and retail companies would have the limit of paying increased business rates for the first time since 2017.
The cuts will be paid for by imposing higher charges on huge warehouses operated by online firms such as Amazon and targeting owners of empty high street properties.
The LBC appearance was his first media interview after announcing that he would become Prime Minister.
He’s hosting an “Ask Me Anything” online question session on Reddit on Friday.
Conservative leader Kami Badenoch accused him of “avoiding being asked questions”, adding: “Reddit is easy, he can filter what questions he wants to answer, just see the easy questions.”
Burnham is the only candidate in the running to replace Sir Keir Starmer as Labor leader and is expected to take over as prime minister on July 20.
One of the biggest things in his view will be the issue of how to raise money for increased defense spending.
Sir Keir this week announced plans for a £15bn boost – but did not explain exactly where the extra money was coming from.
This means whoever Burnham chooses to replace Rachel Reeves as chancellor will have to make at least £4.7 billion of savings from other departments when she presents her first budget in the autumn.
On Wednesday, Badenoch accused Sir Keir of “leaving this mess to his successor” and asked whether Burnham had agreed to plug the gap.
He said Friday that the shortfall should be filled not by potential new taxes, but by cutting the welfare bill and getting more people to work.
Asked by Marr on LBC whether he was aware of the funding gap before the Defense Investment Plan was published, Burnham said: “I wasn’t in on all the discussions, but to be fair, there was an internal government process going on.
“I think this is something that the country has to confront very seriously.
“We are in a changing world. The nature of the threat is changing.
“What I can say to you tonight is that I will fully fulfill my responsibilities for funding the Defense Investment Plan, if I am in a position to do so, I will take those responsibilities extremely seriously.”
On welfare, Burnham said he would not “cut crude to profit levels that will push those who are struggling into even worse poverty”.
He said he would try to reduce the benefit bill by making changes to the education system to ensure better support for young people gaining technical qualifications and by providing work placements for 16-year-olds.
He also said he would like to see mental health support available to people in work.
In her interview Burnham also said:
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He has not decided on who will be his chancellor, amid speculation he may appoint Ed Miliband to the role
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It is too early to commit to a bank holiday if England are to win the Football World Cup
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They hope their No. 10 North office, announced on Monday, will be located in the proposed government digital precinct near Manchester Piccadilly station.