Andy Burnham, the Makerfield MP, has proposed a series of cost-of-living interventions, including the de-privatisation of water and energy companies and free bus travel for 16- to 18-year-olds, if he becomes Prime Minister later this month. These measures are expected to form part of an immediate cost-of-living package aimed at reducing expenses for both households and businesses.
What specific tax and utility changes is Burnham proposing?
During an interview with LBC’s Andrew Marr, Burnham suggested that there is room within the 2024 manifesto for tax movement. He proposed increasing business rates on warehouses and major developments on the outskirts of cities to fund lower rates for high street businesses, such as pubs.
Burnham also detailed a plan for increased public control over water, energy, and transport. He stated that this move could help lower bills and fares, providing “breathing space” for the public and businesses.
“Britain is paying too much for the basics. People are paying too much, but businesses are also paying too much, and that is certainly true of energy,” Burnham told LBC.
Allies of the MP have urged him to consider further radical measures. These include a one-year freeze on private sector rents, removing green levies from energy bills to be funded by taxes, and reducing the cap on bus fares.
Burnham plans to locate part of the No 10 operation in Manchester, with a preferred site at a digital campus currently under construction near Manchester Piccadilly station.
Why might these policies be politically significant?
The proposal for heavy political intervention to ease cost-of-living pressures may have significant electoral implications. A study by Persuasion UK suggests that if Labour runs on a platform of “cost of living populism,” it could win 263 more seats than its current trajectory suggests.
However, enacting these promises involves complex financial hurdles. While Wes Streeting, the former health secretary, has suggested raising capital gains tax, Treasury officials have warned that this action might not raise any extra money.
Additionally, experts have noted that bringing utilities under public control does not guarantee lower consumer bills. This is due to the significant levels of investment required, particularly within the water industry.
The tension between Burnham’s proposed “cost of living populism” and the warnings from Treasury officials highlights a major policy risk. While the political incentives for such measures are supported by Persuasion UK data, the practical challenge of funding these interventions without breaking borrowing rules remains a primary obstacle for a potential administration.
How will the new administration operate?
Burnham has pledged to maintain financial discipline and promised not to break government borrowing rules. He cited his previous experience in the Treasury and as the head of the Department of Health as evidence of his ability to manage public finances.
The MP also intends to decentralize power by spending working time in Manchester. He stated that establishing a “No 10 North” is a way to drive a new initiative focused on taking power away from Westminster.
Frequently Asked Questions
How does Burnham plan to restructure business rates?
He proposes increasing business rates for warehouses and major developments on city outskirts so that rates can be cut for high street businesses like pubs.
What are the proposed changes to energy and water costs?
Burnham has suggested a plan for more public control over water and energy companies to help bring down consumer bills.
Where will the Prime Minister’s office be located?
Burnham plans to locate part of the No 10 operation in Manchester, specifically at a digital campus near Manchester Piccadilly station.
Do you believe that bringing utilities under public control is the most effective way to reduce household bills?
