UK Prime Minister Andy Burnham unveils cost‑of‑living package with pub rates cut and pension tax relief

Andy Burnham, newly installed as UK Prime Minister, announced a series of cost‑of‑living measures. A core element is a 20 % reduction in business rates for pubs, social clubs and live‑music venues, set to begin in April 2027. The cut will benefit roughly 32,000 venues and save about £1,100 per premises each year, costing the Treasury around £100 million annually.

The package also includes £850 million to remove VAT from electricity bills, £450 million to cap single‑bus fares at £2, £340 million to end rough sleeping, and a £100 million allocation for the pub rates reduction. Funding for these commitments is said to come from savings, reallocation of existing budgets and future tax measures, though critics warn the pledges may be unfunded.

Burnham floated a higher business‑rates levy on large warehouses to help finance the pub relief, but the proposal was delayed pending further review. A consultation will also target online marketplaces, aiming to make them more responsible for VAT compliance, with any additional revenue earmarked for the business‑rates system.

Other announcements included an automatic £25 Cold Weather Payment for eligible benefit claimants during prolonged cold spells, and a commitment that pensioners whose only income is the state pension will continue to pay no income tax, preserving the triple‑lock uplift for 12 million retirees.

Housing Secretary Angela Rayner rejected proposals for rent controls, citing evidence from Scotland that such measures have not lowered rents. Burnham also highlighted the opening of a new “No 10 North” office in Manchester to decentralise decision‑making.