More than 96% of investors expect Andy Burnham to raise taxes over the next year, a new poll has found.

The latest survey by Wealth Club carried out this month reveals that almost 53% of investors believe taxes will definitely rise and more than 43% say they will probably increase over the next 12 months with Burnham in Number 10.

Burnham’s bid to become Prime Minister has the backing of 349 out of Labour’s 403 MPs, making it mathematically impossible for any rival to succeed.

He is set to be confirmed as the new leader on July 20.

Wealth Club chief investment strategist Susannah Streeter says: “As Andy Burnham prepares to move into Number 10 Downing Street, investors are already bracing for higher taxes.

“An overwhelming 96.1% of investors expect taxes to increase over the next 12 months.

“Mr Burnham will inherit one of the toughest fiscal challenges of any incoming Prime Minister in decades.

“With pressure to repair the public finances, fund public services and stimulate economic growth, investors believe that meeting those competing priorities is likely to require higher taxes.

“Perhaps the most revealing finding is what investors now see as the biggest risk to their wealth.

“Nearly 45% say higher taxes are their greatest concern.

“By comparison, just 3.5% cite inflation and the same proportion identify market volatility.

“That represents a significant shift in investor sentiment, with taxation now eclipsing many of the economic concerns that have dominated headlines in recent years.

“Investors will understandably be looking for reassurance that any changes to the tax system support long-term economic growth, encourage investment and provide certainty for businesses and households.”