PM admits cost of living help is not enough and hints at further support
Prime Minister Andy Burnham concedes that his current cost-of-living initiatives fall short of providing meaningful help, hinting at more support to come.
Stock photo for illustration only, not from the actual event
- Prime Minister Andy Burnham admits current living cost measures are not enough
- To consult Chancellor John Healey on further relief for the October 28 Budget
- Households near new power pylons to get £250 annual bill discount for a decade
- Pleges to maintain no-tax-rise promises while easing pressure on businesses
Prime Minister Andy Burnham has stated that he accepts his announcements aimed at tackling the cost of living are not enough on their own to help people meaningfully, while dropping hints about potential further support.
Since taking office, the prime minister has introduced several measures to assist citizens with rising living costs, including removing VAT from domestic electricity bills and accelerating the planned crackdown on 'subscription traps'. He also mentioned a planned overhaul of train fares and bringing energy, water, and housing under 'more public control', though he stopped short of detailing how he plans to achieve this.
Regarding the water sector, he noted that reversing the 1980s privatisation of water companies in England and Wales would be far from easy. On rail operations, following their return to public ownership, he expressed a desire to remodel train fares to deliver greater public benefit.
Attempting to bring privatised utilities back under public oversight or restructuring national rail systems requires immense capital and complex regulatory changes. With the Labour government committed to strict fiscal discipline, Chancellor John Healey faces a tight balancing act between funding public pledges and keeping government spending under control ahead of the upcoming Autumn Budget.
The remarks follow the government's announcement on Wednesday that residents living within 1,600ft (500m) of newly upgraded electricity pylons and substations across Britain will receive a £250 annual discount on their energy bills for ten years.
"But I take an approach to politics where I do what I can, when I can. Just take that little bit of pressure off and address an issue that you know needs addressing."
Andy Burnham
Speaking to Wake Up to Money, the prime minister acknowledged that increases to national insurance have placed additional pressure on businesses. He revealed he has asked Chancellor John Healey to explore what further steps the government can take regarding the cost of living ahead of the upcoming Budget on October 28, noting that Healey has designated it his main focus.
Healey has maintained that strict fiscal discipline will govern his approach, capping government spending. A major think tank recently warned that meeting both defence and cost-of-living pledges will necessitate either spending cuts or tax hikes, though Labour's manifesto commitment explicitly bars raising income tax, VAT, and National Insurance Contributions for working people—a pledge Burnham insists will be upheld.
Source: BBC Business
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