The Prime Minister, Andy Burnham, has signalled that rail fares could be cut, calling the current cost of train travel "outrageous" and saying the issue is "in my sights".
His comments come as public finances face fresh strain, partly because of the ongoing Iran crisis. Chancellor John Healey is preparing his first Budget on October 28, with soaring energy prices linked to the war in Iran adding to existing pressures. Unfunded policies announced since Mr Burnham took office are also said to be contributing.
Cost-of-living measures so far
Since entering Number 10, the Prime Minister has cut VAT on electricity bills by 5%, reduced business tax for pubs, clubs and music venues, and capped single bus fares at £2. Yet Cabinet ministers were warned this weekend by the PM and the Chancellor that there are no new funds for their departments.
The combination of the budgetary shortfall and geopolitical instability has raised concerns that further tax increases could be on the horizon.
Rail fares "in my sights"
In an interview with the Mirror, Mr Burnham said he was "looking across the piece" for ways to ease cost-of-living pressures. "I think rail fares are too high, outrageously so in some instances. So that's something that's in my sights," he said.
He also discussed VAT and electricity bills, saying: "I mentioned VAT and electricity bills. It's a short-term measure at this moment, but let's see where we can go with that."
Water is another area the Prime Minister wants to reform. "Water is an issue as well, where I think the public pay high bills and they don't see that money then going into infrastructure. There's another area that needs reform."
No false promises
The Prime Minister acknowledged that the cost of living "remains a very tough time for people" and said he was "not giving people false promises".
Chancellor John Healey insisted he would not let supermarkets take advantage of the public by significantly increasing prices amid Iran tensions, but admitted he could not "completely stop the squeeze" on families and businesses. He said the Government would be "hands on" and put "British interests first", giving those feeling financial pressures some breathing space.
