Prime Minister Andy Burnham has said the government plans to go further in addressing the cost of living, with the Budget on 28 October expected to focus heavily on measures designed to reduce pressure on households and businesses. His comments follow a series of early announcements, including the removal of VAT from domestic electricity bills and a planned 20% reduction in business rates for pubs, social clubs and live music venues in England.
Burnham acknowledged that the measures announced so far would not, by themselves, provide a complete answer for people facing higher costs. Speaking during a BBC Radio 5 Live interview, he described his approach as an “accumulation of smaller things” intended to “combine to take the pressure down”, while stressing that further commitments would depend on what could be funded.
Further Cost-Of-Living Measures Are Being Considered
According to the BBC, Burnham has asked Chancellor John Healey to examine what further action the government can take on the cost of living ahead of the October Budget. Healey has said this will be his “main focus”, although he has also committed to maintaining “strong fiscal discipline”, limiting the amount of additional spending available.
Burnham said he accepted criticism that his existing announcements were not enough. “I can accept criticism that this isn’t enough, because I wouldn’t say it’s enough,” he told the BBC. He added that his approach was to act where possible and reduce pressure in smaller stages rather than claim that every problem could be resolved at once.
The prime minister also referred to possible changes involving essential services. He said he wanted “more public control” of energy, water and housing, while acknowledging that reversing the privatisation of water companies in England and Wales would not be straightforward.
Rail fares are another area he intends to examine. Following the return of rail operators to public ownership, Burnham said he wanted to “remodel the rail fares so that we can get more public benefit for people”. The government has also announced that people living within 500 metres of new or upgraded electricity pylons and substations across Britain will receive a £250 annual discount on their bills for ten years.
Business Costs Are Also Expected to Feature in the Budget
Burnham has indicated that support for businesses, particularly those on the high street, will form part of the government’s Budget considerations. According to reports, he said ministers would look at business rates “more broadly” after already announcing a 20% reduction for pubs and similar venues from April.
“We are going to bring forward the VAT cuts on electricity, we are bringing forward the business rate cuts for pubs, we’re going to look at business rates more broadly for high street businesses in the budget,” Burnham said.
He also acknowledged that businesses are facing pressure from several directions. According to reports, Burnham accepted that the previous government’s increase in employer National Insurance contributions had added to costs, alongside higher energy prices.
“The cost of doing business is too high,” he said, while stopping short of making further promises before the Budget. Burnham said he wanted to support high streets and reduce business costs, but added that he would not make commitments that could not be fully funded.
The government’s room for manoeuvre remains limited. Burnham has said Labour will maintain its manifesto pledge not to increase income tax, VAT or National Insurance contributions for working people, leaving the October Budget as the point at which the scale of any further support is expected to become clearer.
