Andy Burnham Unveils Cost-of-Living Relief Package on Second Day as UK Prime Minister

New PM pledges £2 bus fares and 20% hospitality business rates cut to ease pressures on families and high streets

Fresh from his appointment as the UK’s seventh prime minister in a decade, Andy Burnham is set to announce immediate measures aimed at tackling the cost-of-living crisis.

According to an exclusive report, the new Labour leader plans to reintroduce a £2 cap on bus fares within days and outline a 20% reduction in business rates for the hospitality sector.

These steps form part of a rapid “policy blitz” on his second day in office, following earlier pledges to scrap VAT on electricity bills.

Key Announcements

• £2 Bus Fare Cap: Burnham will reintroduce the popular cap on single bus fares, potentially as early as tomorrow. This revives a previous national scheme designed to make public transport more affordable amid rising living costs.

• Hospitality Business Rates Cut: A 20% reduction in business rates for pubs, clubs, music venues, and similar establishments. The threshold at which independent hospitality, leisure, and retail businesses start paying rates will also be raised, providing targeted relief for smaller operators on high streets.

The hospitality measures will be funded by increasing business rates on large out-of-town warehouses, such as those operated by major retailers like Amazon.

Protecting High Streets and Families:

Burnham has long championed high streets as the “heart and soul” of communities. In remarks tied to the announcements, he said: “Our high streets matter to me because they matter to the people who live here. I want to make sure that these family-owned businesses… are protected and given the chance to thrive.”

The moves come alongside plans to remove VAT from electricity bills — funded by scrapping an unfunded digital ID scheme associated with his predecessor, Keir Starmer. Burnham has framed the package as delivering “breathing space” for struggling families and businesses.

Political Context:

Burnham, the former Mayor of Greater Manchester often dubbed the “King of the North,” took office on Monday, 20 July 2026, after Keir Starmer’s resignation. He was formally appointed by King Charles III and has promised to bring stability after years of political turbulence.

The announcements signal a shift toward practical, place-based policies focused on everyday costs rather than large-scale structural reforms in his early days.Reactions and OutlookEarly social media reactions to the news have been mixed, with some welcoming the relief measures while others question the long-term funding sustainability.

As prime minister, Burnham faces significant challenges, including economic pressures and expectations for quick wins on living standards. These initial policies aim to deliver visible benefits to commuters, pub-goers, and high-street traders.

Further details are expected imminently as the new government outlines its agenda.Sources: Huffington Post exclusive reporting and contemporaneous news coverage of Burnham’s transition to No. 10.