Andy Burnham officially became Britain's new Prime Minister on Monday, July 20, and within his first week he made several announcements impacting England. Key measures include a VAT cut on electricity, a £2 bus fare cap, a pause on early prisoner releases, a new No 10 North base in Manchester, and a business rates cut for hospitality venues.
VAT Cut on Electricity Bills
From October 1, VAT will be removed from domestic electricity bills. The change is estimated to reduce the annual Ofgem price cap by around £45, with companies expected to pass the reduction onto customers.
£2 Bus Fare Cap
A new £2 single bus fare cap will replace the current £3 cap. Eligible single bus fares on participating routes will not exceed £2. The cap will run from January 1 to December 31, 2027. It aims to make travel more affordable, especially for those in rural and coastal areas where ticket prices can be higher.
Pause on Early Prisoner Release
Prime Minister Burnham announced a pause on plans for early release of prisoners under the new Sentencing Act set for September. He said: “Keeping the public safe will always be my top priority. I am working closely with the new Justice Secretary and have instructed my team to put a pause on the changes that were due to start in September. No prisoners will be let out under this policy until we have conducted an urgent review and done everything we can to minimise risk to the public. Where changes are needed, we will not hesitate to make them.”
No 10 North in Manchester
A new No 10 North base has been created in Manchester. Burnham held his first meeting there and said Whitehall resistance to devolution is “over for good”. He plans to work from the site once a week. He stated: “For 40 years, power and resources have been sucked into the centre, and too many communities have felt forgotten, without the attention and investment they deserve. No 10 North will change that by putting more power into every postcode across the entire country. It will be the situation room for making Britain better – the place we use to get power out of Westminster, into the hands of people at a local level, so that they can turn things around. The days of Whitehall resisting devolution are over, for good.”
Business Rates Cut for Hospitality
From April next year, business rates will be cut by 20% for pubs, clubs, and live music venues across England. The discount will apply to nearly 32,000 hospitality businesses and is expected to save a typical pub about £1,100 annually, but not available to the largest live music venues. Burnham said: “This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.”
