Prime Minister Andy Burnham has pledged to assist in reducing the financial burden on millions of British citizens.
During his inaugural address as Prime Minister, he vowed to provide individuals with more financial flexibility. What specific measures has he put forward so far?
Starting this October for a six-month period, Value Added Tax (VAT) will be reduced on electricity bills, a move anticipated to save the average household approximately £45, according to the Government.
However, energy costs are projected to increase again this winter, potentially offsetting any savings from the VAT cut. Ofgem’s price cap recently rose by roughly 13% this month and is set for another update in October.
Currently set at 5%, VAT is typically passed on to customers by suppliers.
The Prime Minister remarked, “I expressed my intention to provide people with room to breathe, and that’s precisely what I’m announcing on my second day as Prime Minister.
“We are promptly taking steps to lessen taxes on energy bills, inject more money into people’s pockets, and revive hope.”
In a bid to enhance affordability and accessibility, the £2 cap on bus fares will be reintroduced from January 2027 through the entire year.
Previously, the Conservatives had a £2 cap from January 2023 to December 2024, but the incoming Labour government raised it to £3, citing affordability concerns.
Burnham stated, “Accessible and affordable transportation links are crucial. No one should be excluded due to financial constraints.
“For too long, the notion of lower transport costs has been dismissed. I disagree. I have implemented it before, and I will do so again now: a £2 cap on bus fares for millions nationwide.
“Reduced fares will facilitate people in reaching their destinations, providing relief in coping with the cost of living.”
From April next year, a 20% reduction in business rates will apply to pubs, clubs, and live music venues across England, benefiting around 32,000 hospitality establishments.
Expected to save a typical pub around £1,100 annually, this discount, in addition to a previously announced 15% cut, will not extend to the largest live music venues.
The Prime Minister expressed, “I am granting a 20% reduction in business rates to thousands of pubs, clubs, and music venues.
“I will not stand idly by as these beloved local establishments vanish, replaced by boarded-up windows and ‘For Sale’ signs.
“They represent the heart of our communities, and it’s time we support them.”
