Andy Burnham vowed to give Brits “some breathing space” when it comes to the cost of living during his first speech as prime minister.
That was only a month ago – and he has already unveiled a series of policies aimed at making everyday life a little easier for the general public.
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But just last week, Burnham also admitted that the changes he made might not be enough.
He told the BBC: “We will do everything that is possible for us to do. But I think everyone knows I am in position with limited room for manoeuvre.”
It was a noteworthy admission considering he has made the cost of living the central mission for his government.
Burnham has implemented a £2 cap on single bus rides, scrapped VAT on household electricity bills and announced a ban on “subscription traps”.
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He unveiled a 20% cut to business rates for pubs, social clubs and live music venues from April onwards.
His government have also promised to help the number of unemployed young people as the number of 16 to 24-year-olds not in work surpassed a million this year for the first time in more than a decade.
The incremental changes he has unveiled appear to have had some cut-through, his net favourability rating of +13 is the highest for any prime minster since Boris Johnson at the start of the Covid pandemic, according to YouGov.
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Labour has finally started to take the lead in some opinion polls, ending Reform UK’s monopoly over prime position.
But, as Burnham alluded to when speaking to the BBC, there are plenty of obstacles which stop him from being able to make significant changes to the cost of living.
For instance, UK inflation rose to 2.9% in July due to rising energy costs driven by the Iran war.
Britain refused to get directly involved with this conflict but it continues to destabilise global fuel prices and therefore impacts British energy bills.
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Though this is out of the government’s control, there’s a risk voters will still end up blaming the government – as they did when the Russian invasion of Ukraine caused a spike in energy prices in 2022.
Energy regulator Ofgem is expecting the price cap for household energy bills in Britain to rise by 4% in October.
Energy bills are forecast to hit a three-year high this winter as well, eclipsing any benefits from Burnham’s VAT cut on electricity bills.
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There is a growing body of support for expanding drilling in the North Sea for oil and gas to boost the economy and reduce Britain’s dependence on international energy imports.
However, after a series of record-breaking heatwaves worsened by manmade climate change, it’s unclear if Burnham will risk upsetting environmentalists by extending existing North Sea licences.
The summer heatwaves and the subsequent droughts have rocked the agricultural sector too.
Farmers fear for their yields will be hugely impacted in the months to come – meaning groceries are likely to go up in price.
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Dr Liliana Danila, chief economist at the Food & Drink Federation (FDF) said: “Supply chain disruption isn’t going away.
“Alongside geopolitical volatility, extreme weather will continue to put pressure on the price of key ingredients. This makes it increasingly difficult for food manufacturers to shield consumers from price rises and protect their our resilience.”
The Bank of England will decide whether to raise interest rates next month, which could add another layer of pressure to Burnham.
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via Associated Press
The TUC general secretary, Paul Nowak, said: “With inflation ticking up because of rising energy bills – and no end in sight to Trump’s illegal war in Iran – we are going to have to see more government action to support households in the coming months.”
But where will this money come from? UK debt is nearing £3 trillion, which represents 94.1% of gross domestic product (GDP).
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It comes after official figures showed an unexpected hike in government borrowing to £1.8 billion.
Speculation that the government will therefore raise taxes to meet its spending commitments is therefore rising.
All eyes will be on chancellor John Healey when he unveils his Budget on Wednesday, October 28.
The prime minister has tried not to raise the public’s expectations too high when it comes to what he can do to help the cost of living – he wrote on social media this week: “We won’t fix everything overnight.
“But wherever my government can make life a little easier, fairer or more affordable, we will. “
His last two predecessors, Keir Starmer and Rishi Sunak, tried to adopt a similar message – and neither won any plaudits from the public for doing so.
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The question is whether Brits will even feel the changes Burnham intends to make.
“There’s a lot to be said for the politics of trying,” More in Common’s executive director, Luke Tryl, told the Resolution Foundation this week.
“What Burnham has is an opportunity to say to the public that we can’t do everything immediately.
“And I think they understand that international affairs are a big driver of this, but it’s sort of saying, we’ve looked at areas where we can make a difference and we’re doing that.
“It may be that he cannot meet public expectations on this and it goes the other way of other previous prime ministers.
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“But I don’t think there’s an option of not being seen to do this.”
Burnham is, of course, still enjoying the honeymoon period. But will he able to live up to his own expectations?
Listen to Commons People, the podcast that makes politics easy. Every week, Kevin Schofield and Kate Nicholson unpack the week’s biggest stories to keep you informed. Join us for straightforward analysis of what’s going on at Westminster.
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