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Burnham Signals Further Action on the Cost-of-Living Crisis

8/12/2026, 8:21:25 AM

New Cost-of-Living Roadmap

Prime Minister Andy Burnham told BBC ’s *Wake up to Money* that his recent announcements – VAT removal on domestic energy bills and an accelerated end to “subscription traps” – are not sufficient on their own. He said he will pursue an “accumulation of smaller things” and hinted at broader public control of water, energy and housing, as well as a remodel of rail fares after the return of rail operators to public ownership. Burnham has asked Chancellor John Healey to explore additional measures in the Budget scheduled for 28 October, which Healey has described as his “main focus”.

Recent Measures and Policy Context

Since taking office, Burnham’s government has introduced a 20 % business-rates cut for pubs, social clubs and live-music venues in England from April, branding it a “first step” for the hospitality sector. Labour’s manifesto pledges not to raise income tax, VAT or National Insurance Contributions for working people, a commitment Burnham says he will uphold. Earlier budgets under Chancellor Rachel Reeves saw increases in employer NICs and the minimum wage, adding pressure on businesses that Burnburn acknowledges.

Official Statements & Planned Actions

Regarding rail, he wants fares remodelled to generate greater public benefit. Healey, tasked with fiscal discipline, is expected to limit additional spending while assessing further interventions.

Data & Statistics

  • VAT on domestic energy bills has been removed.
  • Business-rates relief of 20 % applies to qualifying hospitality venues from April.
  • The upcoming Budget on 28 October will be the primary forum for any new cost-of-living measures.

Verbatim Quote

“I would like to bring down the cost of doing businesses. I want to make high streets more vibrant across the country. I know that cannot be done by simply wishing it.” — Andy Burnham, prime minister