Andy Burnham’s long held ambition to be the UK’s prime minister will come with some daunting economic challenges.

Productivity growth is at a virtual standstill, real incomes have stagnated and the cost-of-living crisis has become a permanent fixture for many households. Meanwhile, the government spends around £110 billion a year paying the interest on nearly £3 trillion of debt.

Burnham says he is on a “10-year mission” to transform the country. So what might he do to try to fix the British economy?

One thing that voters can reasonably expect is a move towards greater devolution of power – especially spending power – to the English metro regions. As mayor of Greater Manchester, Burnham often argued that too many economic decisions were made in London, and that this held the rest of the country back.

Burnham believes that allowing other regions to implement their own locally led pro-growth policies could transform Britain’s economic prospects. It’s a view shared by one of his key economic advisers, Jim O’Neill, who has long argued that creating metro growth hubs could substantially boost the UK’s GDP.

This approach is bound to be controversial. It could mean, for example, taking resources away from the £49 billion Heathrow airport expansion plan to help fund HS2 so it can reach the north.

More radically, it might require a revamp of the whole system of local government finance, starting with reforming the council tax system, which is still entirely based on property values set in 1991.

This would mean higher bills for areas where house prices are high, such as London and the south-east. But it could substantially cut payments for those living elsewhere – which could be popular in red wall constituencies where Labour has been losing support.

Social care

Burnham has also spoken about reforming the UK’s social care system. Social care is not part of the NHS, which means those who need residential care in old age must either sell their house to fund it, or rely on cash-strapped local councils.

Finding a solution to social care has proved too challenging for successive governments. When Burnham was health secretary under Gordon Brown in 2010, he proposed putting a tax on the value of homes after the owner’s death – which critics labelled a “death tax”.

Nevertheless, he may try something similar as prime minister. Solving the social care conundrum would dramatically ease the financial strain on the NHS.

Nationalisation

Another cause that Burnham has recently embraced is tackling the poor performance of the companies that supply households with energy and water.

First in line would be Thames Water, which is already facing bankruptcy and a temporary government takeover. A straight-out nationalisation of water would be expensive, with that company alone currently valued at £10 billion.

But better public utilities could also boost productivity. Housing development in East Anglia is now being held back by lack of water, for example, as no new reservoirs have been built in the UK since 1992. And a water company which didn’t have to pay out hundreds of millions of pounds to shareholders could mean lower household bills.

Bending, not breaking, the fiscal rules

Burnham has promised to stand by Labour’s commitments not to increase VAT, income tax or national insurance. He has also pledged to stick by Labour’s fiscal rules, including the key stipulation that day-to-day government spending must be covered by tax revenues within three years, so that borrowing can only be for long-term capital investment.

These rules have been structured in such a way that could still give a Burnham administration considerable leeway to boost spending on public infrastructure.

Burnham could argue that increasing public investment this way would pay for itself by boosting UK productivity.

He may also want to look at other ways the Treasury could raise money without breaking Labour’s manifesto pledges. There are quite a few options, including higher wealth taxation, or changes to tax relief on pensions and savings.

Burnham is also taking advice from Carys Roberts, the former head of the Institute for Public Policy Research thinktank, and a strong advocate of wealth taxes, which may indicate his direction of travel.

All of these reforms will face fierce political opposition from the Conservatives and the right-wing press, which in the past have been enough to scupper them.

But if Burnham keeps his Labour party colleagues happy, he need not face an election for three years. And if he manages to improve public services, boost growth and lower the cost-of-living crisis, he may be able to turn round Labour’s prospects.

The key is the government delivering the benefits of higher taxes to ordinary citizens, both by reducing the cost of living and providing improved services. If Burnham can square this circle, while avoiding the ire of financial markets, he will have pulled off a trick which his predecessor singularly failed to do.

North Yorkshire Police said the incident reportedly happened near the Clocktower between 6.30pm and 6.45pm on Saturday (June 27).

Members of the public told officers on patrol that a man “had indecently exposed himself to their group”, the force said.

A police spokesperson said the “suspect was identified and arrested – he has since been released on bail pending further enquiries”.

The alleged incident is said to have happened during the racecourse’s Summer Music Saturday, when Becky Hill performed at the course.

Police are urging anyone with information about the alleged incident to contact North Yorkshire Police.

Those with information are asked to email lucy.watson@northyorkshire.police.uk or phone 101 and ask for PC 1983 Watson.

Crimestoppers can be contacted anonymously on 0800 555 111 or via its website.

Quote reference 12260120225 when passing on information to the police or to Crimestoppers.

People face penalties if they miss the annual deadline

Specialists are cautioning taxpayers as a crucial HMRC deadline approaches, with one expert warning that “many get caught out”.

With just one month remaining, HM Revenue and Customs (HMRC) is urging millions of Self Assessment taxpayers to gear up for the July 31 deadline for the second payments on account for the 2025 to 2026 tax year. Customers are able to arrange monthly or weekly payment plans, and any payments already made through these schemes will count towards their next Self Assessment tax bill.

Payments can be made via the HMRC app, with nearly two million Self Assessment taxpayers having done so since its launch in January 2022. The app makes it straightforward for people to contribute towards their tax bill, set payment reminders, and monitor their payment history.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “We know managing a Self Assessment tax bill isn’t always straightforward and we are here to help. From paying instantly via the HMRC app to spreading the cost through a payment plan, there’s support available for every customer. Search ‘Pay your Self Assessment tax bill’ on GOV.UK to choose the payment option that works for you.”

Matthew Knight, chief freelance officer at Freelancing.Support, said many people did not know the deadline.

He added: “While everyone knows the January 31 deadline, many who are new to freelancing often get caught out by payment-on-account deadlines, which asks you to pay your taxes ahead of your income. Getting into the habit of doing your accounts monthly or quarterly helps you keep on top of the admin, rather than waiting for HMRC to remind you. This is where Making Tax Digital could actually help small businesses, ensuring they’re on top of their taxes.”

Ross Lacey, director and Independent Financial Adviser at Rayleigh-based Fairview Financial Management, said it was important to keep your books up to date.

He added: “It’s good practice to get on top of this as early as possible. That way, you can ensure the payments on account remain appropriate for the level of income you’ve actually earned.

“It also helps with any changes you may want to make to your business in the current tax year, using the information on how much profit, or not, was generated in the previous tax year. Far too many people are almost a year behind in knowing how their business is really doing. Keeping the book up to date throughout the year makes this less of a mammoth task.”

Samuel Mather-Holgate, managing director and IFA at Swindon-based Mather and Murray Financial, said “silence is usually the most expensive option”.

He added: “The Self Assessment system is creaking because it asks millions of ordinary people to behave like unpaid tax administrators. Staying up to date matters. If you miss the July 31 payment on account you can quickly face interest, penalties and nasty cash-flow shocks.

“But HMRC cannot keep relying on last-minute nudges and an app to fix a system many people find confusing. There should be far clearer prompts, plainer language and earlier warnings, especially for the self-employed and side-hustlers.

“The practical advice is simple – check your online account now, do not assume payments on account are optional, put money aside weekly, and speak to HMRC before the deadline if you cannot pay. Silence is usually the most expensive option.”

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Nouran Moustafa, practice principal and IFA at Roxton Wealth, said taxpayers needed to act before the deadline.

She added: “Self Assessment needs year-round organisation. The July 31 payment catches people off guard because it lands months after the January rush, just when many self-employed people, landlords and business owners are focused on keeping cash moving through the summer.

“Being up to date matters because this is not a bill you can wish away. Missing it can mean interest, stress and a much bigger problem by January, when the balancing payment and next payment on account can arrive together. There is publicity, but not enough explanation. Too many people still misunderstand what a payment on account is, or assume income received is fully theirs to spend.

“My advice is simple: make tax part of managing money all year round. Put aside a percentage of every payment, check your HMRC account now, and only reduce a payment on account where there is a genuine, evidenced reason your income will be lower. If cash flow is tight, act before the deadline, not after it. A payment plan is a tool, not a failure.”

A Love Island USA star has spoken out after being removed from the reality series following resurfaced footage and social media posts.

Alannah Keyser, who left the villa mid-episode last Thursday, issued an apology video for using a racial slur in a video.

Taking to TikTok, the 21-year-old addressed a clip circulating online of her using the n-word while singing along to Roddy Ricch’s 2019 song The Box.

In addition, an alleged screenshot of her using a racist slur on social media was widely shared.

She captioned her post by saying: ‘Remember that reality tv is HEAVILY edited & my chats/kisses with the other boys were unfortunately not aired.’

In the video, which has over 81,000 likes, she speaks to camera by saying: ‘Hi everyone, I’m coming on here to address some things that have been circulating online.

‘I do want to begin by addressing the video of me singing along to a Roddy Ricch song that contains a racial slur.

‘I’m sorry to whoever’s seen that video and has been offended by it, that was never my intention. The video is from six years ago and that word is just not in my vocabulary anymore.’

She continued by saying: ‘I’d also like to address the screenshots that have been going around online that have been falsified. What has been shared does not reflect the truth and it’s never been in my character to discriminate against anybody’s skin colour.

‘I do want to say directly that I do not support racism or discrimination of any kind, and I never have.

‘When I first found out that these things were going around online it really broke my heart and I couldn’t do anything about it. But this has definitely been a learning lesson for me and it sucks that I didn’t really get a chance to really show off my personality and who I am.’

The video then cut to a black screen with white text which read: ‘The video cut, but its always been in my nature to spread positivity and help others, and I will continue to do so.’

Keyser is the second contestant on Love Island USA season eight to get removed from the villa for saying the n-word.

In late May, Vasana Montgomery was fired in the days leading up to the season eight premiere after two videos of her using the slur went viral.

In last year’s Season seven, two contestants, Yulissa Escobar and Cierra Ortega, were also caught using racial slurs and had to exit the Villa.

Peacock, which is the network who airs Love Island, told Deadline that it was not aware of Keyser’s social media posts prior to casting her as they had not been shared publicly until after her appearance on the show.

The streamer said that it vets each contestant, but sources say these posts would not be accessible during that vetting process.

Love Island USA season 8 is available to watch on Peacock.

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