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Prime Minister Burnham implements initial cost of living policies

Prime Minister Andy Burnham has introduced a six-month suspension of VAT on household electricity bills, a 20 per cent reduction in business rates for hospitality venues, and a cap on bus fares outside London at £2.

  • Andy Burnham became Prime Minister just over a month ago, succeeding Sir Keir Starmer.
  • Initial policies include a six-month VAT suspension on household electricity bills and reduced business rates for pubs, clubs, and live music venues.
  • Labour's poll numbers rose to 26.5 per cent by the end of July, a week after Burnham's appointment, up from under 19 per cent after May's local elections.

Prime Minister Andy Burnham has implemented a series of initial policies focused on cost of living issues, just over a month after taking office. These measures include a six-month suspension of VAT on household electricity bills, a 20 per cent reduction in business rates for pubs, clubs, and live music venues, and the capping of bus fares outside London at £2.

Mr Burnham also pledged to end long-term rough sleeping within three years and temporarily halted the early release of convicted criminals from prison. The Institute for Fiscal Studies estimated that the VAT suspension would reduce the average household electricity bill by £25, while business rate relief would save the average pub £20 per week.

Following Mr Burnham's formal appointment, Labour's poll numbers increased to 26.5 per cent by the end of July, a week after his appointment, up from just under 19 per cent after May's local elections. Sir John Curtice of the University of Strathclyde noted that Mr Burnham's arrival has given Labour new hope, but he needs to deliver on policy challenges.

Mr Burnham's broader agenda includes devolution, particularly of financial powers to elected mayors, and the establishment of No. 10 North in Manchester.

Why this matters: The new policies aim to address immediate cost of living concerns for households and support the hospitality sector.

What this means for you: Your household electricity bill is estimated to fall by £25 over six months due to the VAT suspension. If you own a pub, club, or live music venue, your business rates could be reduced by £20 per week. Bus fares outside London will be capped at £2.

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