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[POLITICS] · United Kingdom · 100 sources

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UK Prime Minister Andy Burnham unveils bus fare cap, business‑rate relief and electricity VAT cut

Prime Minister Andy Burnham confirmed a £2 cap on bus fares to begin in January 2027, aiming to ease transport costs for commuters.

He also announced a 20 % reduction in business rates for pubs, clubs and live‑music venues, covering roughly 32,000 establishments and saving an average venue about £1,100 a year. The measure will cost about £100 million and will be funded by a review of tax relief on businesses such as vape shops.

From 1 October 2026 the government will scrap the 5 % VAT on domestic electricity for a six‑month period, saving the average household roughly £45 annually, although experts warn that overall energy bills will still rise.

Burnham paused the early‑release scheme for prisoners that was to free up to 6,000 inmates under the new Sentencing Act, citing concerns about public safety.

A think‑tank estimates the combined cost of these pledges will exceed £2 billion and has squeezed the Treasury’s fiscal headroom to about £8 billion.

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Lancashire Times [lancashiretimes.co.uk]
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Time to Heal-ey • Resolution Foundation [www.resolutionfoundation.org]
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Yorkshire Times [yorkshiretimes.co.uk]
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