Andy Burnham’s first week as prime minister focused on cost of living measures
Andy Burnham has begun his first week as Britain’s new prime minister with a flurry of policy pledges, predominantly aimed at lowering everyday living costs for households, reports BritPanorama.
During his first cabinet meeting on Tuesday, he described his administration as a “cost of living government”, announcing several initiatives designed to alleviate financial pressures on citizens across the UK.
In his inaugural speech after ascending to the premiership on Monday, Mr. Burnham outlined a bold agenda to overturn economic policies enacted during the Thatcher years, promising “the biggest changes in the last 40 years”.
His initial policy announcements will focus on immediate relief, with measures aimed to take effect by early next year.
Experts caution that while Mr. Burnham’s proposals are ambitious, securing funding for them may prove challenging in the current financial landscape. Notably, some commitments made during his campaign trail may not rank among his early priorities.
Confirmed or proposed policies from the Burnham government thus far include:
Energy bill VAT cut
One of Mr. Burnham’s first actions was to scrap VAT on household electricity bills starting in October, expected to decrease the typical household’s energy expenses by £45. The Treasury indicated that this VAT cut would cost around £850 million this financial year, funded by cancelling the planned Digital ID programme.
However, the Office for Budget Responsibility (OBR) has pointed out that the funding for the Digital ID initiative was “unfunded”, relying on unidentified savings from departmental budgets.
Bus fares capped
On the third day of his premiership, Mr. Burnham announced the reinstatement of the £2 cap on bus fares, reversing a previous increase initiated by his predecessor Sir Keir Starmer. This cap will be partly financed by converting grants for international climate projects into repayable loans.
He emphasized that “Good, affordable transport links are essential. No-one should be priced out of those and left behind.”
A plan to end rough sleeping
In his inaugural remarks, Mr. Burnham asserted that his “first instruction” would be to eliminate rough sleeping across the nation. The government has allocated £340 million aimed at securing suitable homes and providing immediate housing support for those in need, with a goal to assist at least 3,000 long-term rough sleepers over a five-year timeframe.
Number 10 North
Mr. Burnham proposed establishing “No 10 in the North”, a regional office of Downing Street based in Manchester, which he maintains is “not a gimmick”. Staff are already operating from this base, although its specific location remains undisclosed.
Unfreezing tax personal allowance – U-turn
Prior to taking office, Mr. Burnham suggested addressing the income tax personal allowance freeze, currently set at £12,570, a measure extended last year. While acknowledging that this issue was frequently raised during his campaign, he remarked that any adjustments would be “difficult given the financial circumstances in which we find ourselves.”
Devolution and public control
A vocal proponent of devolution during his time as mayor of Greater Manchester, Mr. Burnham stated his intent to decentralize power from Westminster, emphasizing the need to bring necessary services “under stronger public control”. Further details on this agenda are anticipated in the near future.
Business rates rebalanced
Formerly mayor, Mr. Burnham has pledged a 20 percent cut in business rates for pubs and lifting the rate threshold for small businesses, stressing the importance of high streets as vital to local communities. He suggested the possibility of raising business rates on large warehouses, including those operated by multinational retailers, to finance these measures.
As the Burnham administration begins to settle into its responsibilities, the immediate focus on everyday economic relief aligns with both public necessity and political urgency within the UK’s current economic context. The extent to which these ambitious policies can be implemented remains to be seen.
