Prime Minister Andy Burnham has announced a series of policy measures since taking office, including a cap on single bus fares at £2, the removal of VAT from household electricity bills, and a drive to end rough sleeping by Christmas. The promises, detailed in a recent Guardian article, aim to address the cost of living, shift power from Westminster, and bring services under public control. However, many of these pledges are not firm commitments, and their implementation timelines and funding sources vary.
Bus Fare Cap and VAT Cut on Electricity
On his second day as prime minister, Burnham promised to scrap VAT on household electricity bills from October, a move intended to ease cost-of-living pressures. The government stated the tax cut would reduce the average household’s electricity bill by £45, though actual savings depend on usage. The policy would be funded by ending Keir Starmer’s digital ID scheme, which would have cost £1.8bn over three years. However, Darren Jones, former chief secretary to Starmer, claimed the digital ID scheme’s funding was still unfilled, and Burnham would need to detail how he would pay for new policies at the budget.
Single bus fares across England, excluding London, will be capped at £2 from January, down £1 from the current maximum. This reverses a fare increase implemented by Starmer and former chancellor Rachel Reeves in 2024. The cap will last until the end of 2027 and is expected to cost £454m. Ministers have allocated funds for devolved governments to make similar moves. About £400m will come from switching investment in international climate finance to loans, with the remainder from savings in the Department for Energy Security and Net Zero’s budget. Experts have raised concerns that using the aid budget for bus fares could risk the world’s most vulnerable people, especially those facing severe climate impacts.
Homelessness and Disabled Travel Initiatives
Burnham has made tackling homelessness a central policy, aiming to offer everyone sleeping rough a route off the streets by Christmas. He wrote in the Guardian that the government is putting £442m behind a national drive, with £102m for medical care and addiction support, and £340m from existing housing budgets over three years to get people into accommodation. The prime minister acknowledged that he has not set a target for reducing rough sleeping, but said real progress must be made by Christmas, as officials cannot force people into unwanted accommodation.
From April 2027, disabled people in England will be able to use their bus passes at any time, seven days a week, instead of the current 9.30am to 11pm weekday restriction. The change ensures disabled people can travel for work or appointments without losing free travel. The government committed £60m to fund the change, delaying implementation until spring to allow local authorities time to adjust arrangements and for legislation to be amended.
West Midlands Bus Network and Business Rates
Burnham has supported the West Midlands Combined Authority’s move to bring its bus network under public control, announcing an extra £11.5m over three years for legal advice, staff, and IT systems during the transition. About 4,800 jobs will be protected, and 750 buses a day will keep running. The cost of the deal is still being finalized, but the government is separately providing over £2bn over five years for zero-emission buses.
From April next year, pubs, social clubs, and most live-music venues will receive a 20% cut in business rates. The government said about 32,000 businesses would benefit, with the average pub saving at least £1,100 a year. The measure is expected to cost about £100m annually, funded by increasing business rates on vape shops and cracking down on overseas sellers avoiding VAT on online marketplaces.
