Andy Burnham Promises Breathing Space on Cost of Living in First Speech

Andy Burnham promised to give people more breathing space to cope with the cost of living in his first speech as prime minister on 20 July 2026. BBC News reported that policies will be announced on Tuesday, his first full day in office. Burnham confirmed he will be looking at the tax-free personal allowance ahead of his first Budget in the autumn.

He said changing the personal allowance would be difficult in the current economic circumstances. Income tax and National Insurance thresholds have been frozen until April 2031 in England, Wales and Northern Ireland. Burnham said he will stick to the Labour manifesto of not raising income tax, National Insurance and VAT.

He hinted at asking for a little bit more in tax from some people. The amount of money owed to energy suppliers by customers is at a record high of £4.79bn, up 15% in a year. Burnham said he would bring essentials under public control to make them more affordable.

He announced a plan to build more council homes. Burnham said he does not want to leave office without reforming the social care system. The government will stick with the state pension triple lock. Sir Keir Starmer and Rachel Reeves removed £150 from a typical annual domestic energy bill in April by cutting some levies and moving others onto taxation.

US-Israeli strikes on Iran caused energy bills, food costs and mortgages to rise again. Andy Burnham was appointed prime minister by King Charles.