Burnham's PM Promises: VAT Cut, Bus Fares, and Timelines 2026

Andy Burnham has made several key promises since becoming Prime Minister, including cutting VAT on electricity and capping bus fares. This article outlines his pledges, costs, and expected timelines.

Key Promises and Timelines

Burnham's early announcements focus on easing cost-of-living pressures and shifting power. Below is a summary of his main commitments, their projected costs, and when they take effect.

VAT Cut on Electricity

On his second day as PM, Burnham promised to scrap VAT on household electricity bills from October. The government says this will save the average household £45, though actual savings vary by usage. Funding comes from ending Keir Starmer's digital ID scheme, which was projected to cost £1.8bn over three years.

However, Darren Jones, former chief secretary under Starmer, claims the digital ID money was never fully allocated. Burnham will need to clarify funding at the upcoming budget.

£2 Bus Fare Cap

Single bus fares across England will be capped at £2 from January, down from the current £3 maximum. This reverses the 2024 increase by Starmer and Rachel Reeves. The cap excludes London and lasts until end of 2027.

The £454m cost will be covered by £400m from switching international climate finance to loans and the rest from energy department savings. Experts warn this could harm vulnerable populations facing climate impacts.

Funding and Concerns

Burnham's funding strategies have drawn criticism. Using aid budget for domestic bus fares may reduce support for the world's poorest. Additionally, the VAT cut's reliance on scrapping a digital ID scheme raises questions about fiscal sustainability.

Ministers say money is allocated for devolved governments to implement similar measures, but details remain vague.

Key Takeaways

• VAT on electricity will be removed in October, saving households about £45.
• Bus fares capped at £2 from January, excluding London, until 2027.
• Funding comes from scrapping digital ID and reallocating climate finance.
• Experts raise concerns about aid budget diversion and unfunded promises.
• No firm timeline for ending rough sleeping in England.

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