UK Prime Minister Andy Burnham has acknowledged that the measures his government has introduced to ease the cost-of-living burden are not enough on their own.
According to Andy Burnham, his government was pursuing an approach built around an “accumulation of smaller things” which would gradually reduce financial pressure on households rather than relying on a single major intervention.
The Prime Minister’s admission comes as his government faces growing expectations to deliver more substantial relief to families struggling with household bills, while simultaneously maintaining the fiscal discipline promised by Chancellor John Healey.
Burnham has already announced a series of measures since entering Downing Street, including removing VAT from domestic energy bills and bringing forward the planned end of so-called “subscription traps” which can leave consumers paying for services they no longer want or need.
The Prime Minister conceded that the measures introduced so far were insufficient for people struggling with the rising cost of living.
“I can accept criticism that this isn’t enough, because I wouldn’t say it’s enough. 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
He added, “it’s not the end of the story.”
Rather than presenting the measures already announced as a complete solution to the cost-of-living crisis, the prime minister suggested that they form part of a wider programme that could eventually deliver more significant changes.
Among the areas under consideration are energy, water, housing and public transport. Burnham has argued that greater public control over essential services could give the government more influence over prices and help address structural causes of financial pressure on households.
On water, Burnham acknowledged the difficulty involved in reversing the privatisation of water companies in England and Wales, which took place in the 1980s.
“But very much, I’m looking at what can be done. Same with energy,” he noted.
Transport is another area where the Prime Minister has indicated that change could be forthcoming.
Following the return of rail operators to public ownership, Burnham established that he wanted to “remodel the rail fares so that we can get more public benefit for people.”
October Budget Becomes Key Test of Burnham’s Cost-of-Living Agenda
The next major test of Burnham’s approach is expected to come with the government’s Budget on 28 October, where the Prime Minister has already asked Chancellor John Healey to examine what further measures could be introduced to ease household pressures.
Burnham said Healey had made the cost of living his “main focus,” but the Chancellor has also committed himself to maintaining “strong fiscal discipline”
Meanwhile, a major think tank has warned that the government could face difficult choices between raising taxes, reducing spending or scaling back some of the commitments made by Burnham.
The Prime Minister has nevertheless maintained Labour’s manifesto commitment not to increase taxes on working people, including income tax, VAT and National Insurance contributions.
Maintaining that pledge while expanding support for households could prove increasingly difficult if government revenues remain under pressure.
The challenge extends beyond household finances. Businesses are also facing demands for additional support after previous budgets under former Chancellor Rachel Reeves increased employer National Insurance contributions and minimum wages.
Burnham admitted that the National Insurance rise has put further pressure on firms and stated that his government will investigate broader business rate reforms.
Last month, he announced that pubs, social clubs and live music venues in England would receive a 20% reduction in business rates from April, describing the move as a “first step” towards supporting industries facing difficult trading conditions.
“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.”
Andy Burnham
However, Burnham stopped short of making further commitments before the Budget.
For households, the immediate question is whether the series of smaller measures promised by Burnham will translate into meaningful reductions in monthly expenses. For businesses, attention is likely to centre on whether the government can provide relief from taxation and operating costs without undermining its commitment to fiscal discipline.
Burnham’s planned tour of UK during Parliament’s break is also intended to allow the Prime Minister to hear directly from communities about the challenges they face.
His emphasis on “accumulation of smaller things” implies a governing ideology based on incremental intervention rather than a single sweeping package.
However, the enormity of the cost-of-living crisis may call into question whether such method is sufficient.
Burnham has promised greater public control over essential services, cheaper and more accessible rail travel, lower energy costs and support for struggling businesses. Each proposal carries significant financial, regulatory and political implications.
The October Budget will therefore be more than an opportunity to announce additional measures. It will offer an early test of whether Burnham can translate his political vision into policies capable of delivering measurable relief while maintaining control of the public finances.
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