Burnham Pledges Cost-of-Living Relief if Elected PM

Andy Burnham has pledged to introduce measures aimed at reducing the cost of living if he becomes prime minister, outlining proposals to lower household bills, support businesses and expand public control over key services.

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In his first interview since returning to parliament, the Makerfield MP told LBC he would consider cutting business rates for some high street firms, reducing water and energy costs by bringing utilities under greater public control, and making bus travel free for 16- to 18-year-olds.

Plans Target Household Bills and High Street Businesses

The proposals are expected to form part of an early package of cost-of-living measures. Allies have also suggested the package could include more far-reaching policies, such as a temporary freeze on private sector rents.

Speaking to Andrew Marr, Burnham said there was scope within Labour's 2024 manifesto to adjust tax policy. He argued that higher business rates could be applied to large warehouses and major developments on the outskirts of towns and cities, allowing lower rates for businesses such as pubs.

Burnham said both households and businesses were paying too much for essential services, particularly energy. He said a government led by him would introduce a plan to increase public control over water, energy and transport over time, with the aim of reducing bills and fares.

He said the country needed to give both families and businesses more financial breathing space by putting more money back into people's pockets.

Allies Push for Wider Measures

Supporters of Burnham have urged him to go further by freezing private rents for a year, removing green levies from energy bills and funding them through taxation instead, and lowering the cap on bus fares.

Opinion polling suggests proposals focused on easing living costs could prove popular with voters. Research by Persuasion UK found Labour could win significantly more parliamentary seats by campaigning on a platform centred on tackling the cost of living than by maintaining its current approach.

Questions Over Funding

Several of Burnham's proposals could face financial and practical challenges, particularly over how they would be funded.

Wes Streeting, the former health secretary and a potential member of a Burnham cabinet, has suggested increasing capital gains tax. However, Treasury officials have argued such a move would not necessarily generate additional revenue.

Experts have also questioned whether bringing utilities under greater public ownership would automatically reduce consumer bills, pointing to the substantial investment still required in sectors such as water.

Burnham insisted he would continue to follow the government's borrowing rules and rejected suggestions that his plans would rely on higher public borrowing.

He said his previous experience in the Treasury and as health secretary demonstrated his commitment to disciplined public finances.

Manchester Role for Government

Burnham also said he intended to spend part of his working week in Manchester if he became prime minister, as part of plans to decentralise government away from Westminster.

He confirmed that his preferred location for a planned "No 10 North" would be a digital campus currently under construction near Manchester Piccadilly station.

Burnham said having part of the Prime Minister's operation based in Manchester would demonstrate a commitment to shifting power away from Westminster and strengthening regional decision-making.

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Adapted by ASEAN Now. Source 3 July 2026

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