Labour sources reportedly claim Prime Minister Andy Burnham is considering an early general election to secure a mandate for income tax increases, which would breach Labour’s 2024 manifesto. The proposal comes as the Treasury faces worsening public finances and seeks an additional £10–15 billion, though campaigning on higher taxes could prove politically risky.

Treasury headroom is said to have fallen from £23 billion to £5 billion, amid higher borrowing costs, the Iran conflict, energy prices and inflation. Options reportedly include higher capital gains and corporation taxes, bank and oil windfall taxes, an expanded mansion tax, an exit tax and a levy on assets exceeding £10 million; Burnham denies planning an early election and says he will follow the 2024 manifesto.