Prime Minister Andy Burnham is preparing to unveil a set of measures aimed at easing the cost-of-living pressures facing households across the UK, Downing Street confirmed. The announcement is expected within days and will coincide with the start of a nationwide tour focused on high streets and consumer protections. According to officials, the initiative is designed to give the public what No 10 calls "some room to breathe" while the government simultaneously contends with mounting criticism over its early-release scheme for prisoners.
Downing Street said the prime minister's plans centre on "improving high streets" and rolling out consumer-focused reforms as he begins visiting nations and regions across the country. Officials indicated that Burnham intends to challenge what he sees as a Westminster tendency to normalise everyday financial frustrations, such as hidden charges and poor value for consumers.
A spokesman for the prime minister explained the thinking behind the push:
He thinks Westminster has got used to telling people that everyday hassles – like hidden pricing and consumers being ripped off – must be accepted as part of life.
He doesn't think that's right. That's why he's going to start rolling out a series of pro-consumer cost of living measures to give people some room to breathe.
The spokesman added further detail on the scope of the upcoming tour:
He's also going to be kicking off his summer tour around the country, getting out of Westminster and meeting people where they are.
The prime minister is going to be in listening mode to help inform his 10-year plan to bring back hope and make Britain better off.
How extensive will the tour be, and what is it meant to achieve?
According to the Financial Times, Burnham is expected to visit every region of the UK before September as part of a summer-long push centred on living costs and revitalising high streets. Reporting from LBC indicates he will spend much of August in "listening mode," holding meetings with local businesses, community organisations and public-sector staff. The Financial Times also reports that the tour is intended to feed into a broader 10-year strategic plan for the country, with officials cautioning that no major policy overhaul is likely until later in the year.
Separately, reported that Burnham has pledged to announce fresh cost-of-living measures this week, followed later by the promised 10-year plan, positioning both as central pillars of his early domestic agenda. Analysis by BBC Verify found that the spending commitments made by Burnham in his first week in office total roughly £1.5bn.
What cost-of-living steps has the government already taken?
The government has already scrapped the 5% VAT charge on household electricity bills, a move it says will save the typical household around £45 annually, according to Euronews. Separately, BBC Verify notes that the single bus-fare cap in England will drop from £3 to £2 starting 1 January 2027. Coverage of Burnham's first cabinet meeting, reported by Al Jazeera, describes him framing his administration as a "cost of living government" while insisting on strict fiscal discipline.
This latest push builds on steps taken since Burnham took office. Our earlier coverage detailed how he told his cabinet to prioritise living costs at their first meeting, where he announced the energy VAT cut and set up a new Downing Street unit based in Manchester. He had already flagged living costs as a priority when he became prime minister and set out his initial priorities, including rough sleeping, education, housing and defence. Questions remain, as outlined in earlier analysis, about what a Burnham-led government could mean for household finances and the costs behind his broader agenda, particularly around borrowing, taxation and welfare.
Why is the government facing criticism over prisoner releases?
Despite the cost-of-living focus, the government continues to face scrutiny over its early-release scheme for prisoners in England and Wales, set to begin in October. One of Burnham's first actions as prime minister was to commission a review that narrowed the pool of offenders eligible for early release. However, those convicted of manslaughter remain eligible, including two individuals convicted in connection with the killing of PC Andrew Harper.
PC Harper's family, along with former senior police figures and opposition politicians, have urged the prime minister to exclude these individuals from the scheme. Burnham has maintained that doing so would risk overwhelming prison capacity, and Downing Street reiterated on Saturday night that this position remains unchanged, dismissing suggestions that the case could be revisited.
How have opposition parties responded?
Conservative shadow chancellor Mel Stride accused the government of hypocrisy, arguing that its policies were undermining the businesses Burnham claims to want to help:
This is breathtaking hypocrisy from Burnham… they are forcing businesses to close, destroying jobs and driving up prices for the public.
Meanwhile, Labour are plotting to release dangerous criminals onto our streets, leaving people feeling unsafe in their communities.
Liberal Democrat Treasury spokeswoman Daisy Cooper argued that struggling high street businesses required substantive action rather than symbolic gestures, stating that they "need more than a new PM embarking on a vanity tour this summer." She called on the government to adopt Liberal Democrat proposals, including reversing the jobs tax, introducing an emergency VAT cut for hospitality, overhauling business rates and addressing vacant shopfronts left by absent landlords.
Reform UK's economic spokesman Robert Jenrick offered a different prescription, suggesting Burnham should focus on energy costs directly:
If Andy Burnham wants to help people with the cost of living, he should scrap the green levies and taxes on energy bills and rule out tax rises at the Budget.
What happens next?
Burnham is due to resume official duties on Monday and begin his UK-wide tour the following week, with engagements scheduled to run through to September, according to the Financial Times. Parliament is expected to reconvene in early September, at which point pressure over living costs and demands for further policy detail are likely to intensify, according to the Mirror. Meanwhile, the VAT cut on household electricity bills is scheduled to take effect on 1 October 2026, and the reduced £2 single bus-fare cap is due to come into force on 1 January 2027, per BBC Verify's analysis. No significant budgetary interventions are expected before the Budget in October, with Chancellor John Healey having signalled his intention to maintain "strong fiscal discipline" that will constrain the scope of government spending.
Key Facts
- Burnham is set to announce cost-of-living measures within days and begin a UK-wide tour focused on high streets.
- Two of PC Andrew Harper's killers remain eligible for early release from prison starting next year, despite a government review.
- BBC Verify estimates Burnham's first-week spending pledges total around £1.5bn.
- A VAT cut on household electricity bills, saving households roughly £45 a year, takes effect on 1 October 2026.
- The single bus-fare cap in England falls from £3 to £2 on 1 January 2027.
