Prime Minister Andy Burnham has acknowledged that his administration's current efforts to alleviate the cost of living crisis are insufficient on their own. He suggested that a series of smaller initiatives will be introduced to cumulatively reduce pressure on household budgets.
Burnham indicated potential overhauls of train fares and increased public control over essential services like energy, water, and housing, though specific details on implementation were not provided. His administration, which took office three weeks ago, has already introduced measures such as removing VAT from domestic energy bills and expediting the end of 'subscription traps'.
"I can accept criticism that this isn't enough, because I wouldn't say it's enough," Burnham stated in an interview with BBC's Wake up to Money. He described his approach as "do what I can, when I can" to "take that little bit of pressure off and address an issue that you know needs addressing." He emphasized that "It's not the end of the story."
During an upcoming tour of the UK while Parliament is in recess, Burnham plans to discuss how greater public control over services such as water, energy, and housing could offer a more substantial solution to the ongoing cost of living crisis. He acknowledged that reversing the privatization of water companies, which began in the 1980s, would be challenging but indicated that options are being explored, similar to approaches being considered for the energy sector.
Following the return of rail operators to public ownership, Burnham expressed a desire to "remodel the rail fares so that we can get more public benefit for people." He has tasked Chancellor John Healey with examining additional government actions to address the cost of living in the upcoming Budget on October 28. Healey has affirmed that this will be his "main focus," while also signaling a commitment to "strong fiscal discipline," which may constrain government spending.
A recent report from a prominent think tank warned that Burnham may need to increase taxes or reduce spending to fulfill his pledges on defense and cost of living support. The Labour party's manifesto included a commitment not to raise taxes for working individuals, a pledge Burnham stated he intends to uphold. The administration may also face pressure to address rising operational costs for businesses. Burnham previously announced a 20% cut to business rates for pubs, social clubs, and live music venues in England, effective from April, calling it a "first step" toward supporting the industry. He accepted that a recent national insurance hike had added pressure on businesses and indicated that business rates would be reviewed more broadly. "I want to bring down the cost of doing business. I want to make high streets more vibrant across the country. I know that cannot be done by simply wishing it," Burnham said, but declined to make further commitments at this time, stating they would be part of the Budget.