New Prime Minister Andy Burnham has confirmed that rent controls are being considered as part of a package of measures to help ease the cost of living burden on households. Speaking to reporters in the Downing Street garden, Burnham indicated that support for energy bills and capping bus fares are also under review.
Breathing Space for Hard-Pressed Households
In his first speech as Prime Minister, Burnham promised to offer “breathing space” to people hit by rising prices. Some measures are expected to be set out as soon as Tuesday. When asked about his priorities and whether he was looking at bus fares, energy bills, or rent freezes, Burnham said: “We’re looking at all of those things,” but stressed no final decisions had been made.
He added: “We’re looking at measures that could make a difference this year. So we are looking at all of those things, but we’ll make more announcements tomorrow. We’re just finalising the details, so it’s premature to say it will be any one of those particular things.”
Quick and Tangible Relief
Burnham emphasised the need for measures that people would feel quickly. “We just want to do some things that people will feel and feel quite quickly. It won’t solve everything. It won’t take all of the pressure off, but it just shows a direction of travel and that we’re serious about helping them out,” he said.
As Greater Manchester mayor, Burnham had kept the cap on bus fares at £2 after the cap elsewhere in England increased to £3 under the Labour government. The previous government under Sir Keir Starmer was already working on a package of support for household energy bills to address expected increases over the winter. Starmer had resisted calls for rent controls, including from Burnham during his tenure as mayor.
Income Tax Threshold Under Review
Burnham also indicated he was looking at increasing the amount people can earn before becoming liable to pay income tax. The £12,570 threshold has been frozen since 2021, resulting in more people being dragged into paying tax as earnings increase. Burnham acknowledged there would be “significant consequences” to changing the threshold due to the money lost to the Treasury. “Obviously it’s difficult given the financial circumstances in which we find ourselves,” he said.
When asked if the reintroduction of a 50p top rate of income tax was one possible means of helping to fund the measure, Burnham replied: “I think that would be just premature to say that. I’ve barely got my feet under the table.”
