PM admits cost of living help is not enough and hints at further support
The PM has announced a rake of measures to help people since taking office three weeks ago.
Prime Minister Andy Burnham has acknowledged that his current initiatives to address the cost of living are insufficient and hinted at additional measures.
Speaking on BBC's Wake up to Money, Burnham indicated that he plans to introduce an "accumulation of smaller things" designed to "combine to take the pressure down" on household finances. He mentioned potential reforms to train fares and "more public control" over energy, water, and housing, though he did not elaborate on the implementation details.
Since assuming office, Burnham has announced several cost-of-living aids, including the removal of VAT from domestic energy bills and an accelerated end to 'subscription traps'.
When questioned about the perceived inadequacy of his announced changes for struggling individuals, Burnham responded, "I can accept criticism that this isn't enough, because I wouldn't say it's enough." He added, "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. It's not the end of the story."
The Prime Minister, currently on a UK tour during Parliament's recess, expressed his belief that "more public control of essential services" like water, energy, and housing "would mean we could get to a more substantial answer to the cost of living crisis." Regarding water, he noted the difficulty in reversing the 1980s privatization of water companies in England and Wales but stated, "But very much, I'm looking at what can be done. Same with energy."
He also expressed a desire to "remodel the rail fares so that we can get more public benefit for people" following the return of rail operators to public ownership.
Burnham confirmed that he has tasked Chancellor John Healey with exploring further government actions on the cost of living for the upcoming Budget on October 28, with Healey reportedly making it his "main focus." However, Healey has emphasized his commitment to "strong fiscal discipline," which will constrain government spending.
A prominent think tank recently cautioned that Healey might need to increase taxes or cut spending to fulfill Burnham's commitments on defense and the cost of living. Labour's manifesto pledged not to raise taxes for working people, including income tax, VAT, and National Insurance Contributions (NICs), a promise Burnham intends to uphold.
Burnham is likely to face pressure to address rising costs for businesses, especially after previous budgets under Rachel Reeves saw increases in employer's national insurance and minimum wages. Last month, Burnham announced a 20% reduction in business rates for pubs, social clubs, and live music venues in England starting in April, calling it a "first step."
He acknowledged to the BBC that the national insurance hike had burdened businesses and stated that the government would examine business rates "more broadly." Burnham said, "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." However, he refrained from making "at this point, start making commitments," stating, "Those are for the Budget."