A group of prominent economists has written an open letter urging Andy Burnham, widely regarded as prime minister-in-waiting, to pursue a radical overhaul of the tax system once he takes office. The signatories — including Jim O'Neill, an ally of Burnham, alongside academics and think-tank leaders — argue that Britain's structural fiscal problems have defeated seven prime ministers in a decade, and that bold reform is needed to fund deteriorating public services. The intervention matters because Burnham is expected to be confirmed as Labour leader on 17 July and to succeed Keir Starmer as prime minister on 20 July, making him the target of competing policy proposals from across the party and beyond.

The letter points to a new report, Prosperity 2030, from University College London's Institute for Global Prosperity, which proposes replacing six taxes — including income tax, national insurance, capital gains tax and inheritance tax — with a single "national contributions" levy paid on all income. Its authors claim this could raise an additional £75bn a year within five years, funding universal services such as free bus travel and free lunches for all primary schoolchildren, though tax expert Dan Neidle has questioned where the numbers come from. The report also recommends scrapping stamp duty and council tax in favour of a 1% national levy on property value, and trebling air-passenger duty, while a key early decision for Burnham will be appointing a chancellor, with Ed Miliband seen as the frontrunner.