Andy Burnham announces new £2 bus fare cap across England
Economists have warned that taxes will need to rise to fund new policies announced by Prime Minister Andy Burnham in his first days since entering No 10, reports BritPanorama.
The Chancellor, John Healey, may be forced to raise taxes “significantly” to pay for the cost of living promises made by the Prime Minister, the Resolution Foundation told the Telegraph.
Mr Burnham has announced a 20 per cent business rate cut for pubs, clubs and live music venues, a VAT cut to electricity bills, and capped bus fares to £2 from January. The Prime Minister has also promised to fix social care and ease the cost of living.
The business rate cuts alone are expected to cost the government around £100 million per year.
“Depending on the price tag for all these things, then it would have to be a significantly revenue-raising Budget to pay for some of those big-ticket items,” said James Smith, the chief economist at the Resolution Foundation.
As the government grapples with the implications of these fiscal changes, the potential strain on public finances remains a concern for economists and policymakers alike.
