UK Labour heads into 2026 conference amid bank tax and EU relations debates

Britain's political agenda is heating up ahead of the Labour Party's 2026 annual conference, the first to be led by new party chair Andy Burnham.

Bank tax dispute

One of the most pressing issues is a possible windfall tax on banks that the government may introduce in its October budget. The City of London's financial sector is actively lobbying against such a measure. The debate is complicated by the fact that a Treasury minister previously worked as a representative for the City of London — she has stated this does not amount to a conflict of interest.

Brexit and trade with the EU

Another government figure, minister Jonathan Reynolds, has publicly argued that efforts to reverse or unwind Brexit are damaging British business. In his view, the government should instead focus on pragmatically improving trading relations with Brussels rather than pursuing a broader rollback of Brexit.

Blair's appeal to Burnham

Meanwhile, former Prime Minister Tony Blair has urged Burnham to support a future return of the UK to a reformed European Union. Blair stressed that such a step would depend on Brussels showing a credible path toward internal reform.

These issues — tax policy, EU relations and the party's internal direction — are expected to shape the backdrop of the upcoming Labour conference, where Burnham's stance as the party's new leader on key economic and foreign policy questions will also be scrutinized.