Burnham promises to ease cost of living pressures if he becomes prime minister

Andy Burnham has pledged an immediate cost-of-living package if he becomes prime minister, including cutting business rates for high street firms, de-privatising water and energy, and making bus travel free for 16- to 18-year-olds, in his first interview since returning to parliament [1]. The Makerfield MP, who won a by-election on 18 June 2026 with almost 25,000 votes and a majority of over 9,200, is now the frontrunner to succeed Keir Starmer [3]. Starmer announced his resignation on 22 June 2026 amid a leadership crisis triggered by poor local election results and policy discontent, with nominations for the contest opening on 9 July [2]. Burnham told LBC's Andrew Marr that "there is some room within [the 2024] manifesto for movement on tax" and argued for higher business rates on warehouses to fund cuts for pubs [1]. He said "Britain is paying too much for the basics" and outlined a plan for "more public control over water, energy, transport" to bring down bills over time [1]. Allies have urged him to go further, proposing a one-year private sector rent freeze, removing green levies from energy bills and funding them through general taxation, and reducing the cap on bus fares [1]. A Persuasion UK study indicates Labour would win 263 more seats running on a platform of "cost of living populism" than on its current trajectory [1]. Starmer's premiership was marked by a prolonged cost-of-living crisis and controversies including the ending of certain Winter Fuel Payments for around 10 million people and the largest tax rises at a budget since March 1993 [4]. His net approval rating fell to minus 30 by November 2025, with 65 percent of the public dissatisfied with his performance [4]. Burnham, a former Treasury and Health minister, insisted he would not break government borrowing rules: "I am not indisciplined when it comes to the public finances – I was in the Treasury, I ran the Department of Health" [1]. Wes Streeting, the former health secretary who resigned on 14 May 2026 and is expected to serve in Burnham's cabinet, has suggested raising capital gains tax, though Treasury officials warn this would not generate additional revenue [1][2]. Experts caution that bringing utilities under public control may not reduce consumer bills given the investment required, particularly in the water industry [1]. Burnham also confirmed plans to locate part of the No 10 operation at a digital campus near Manchester Piccadilly station, saying he would spend time there to "show a new drive around taking power out of Westminster" [1].