Andy Burnham is poised to announce a new £2 cap on bus fares as soon as Wednesday, according to HuffPost UK. The Greater Manchester mayor also plans to slash business rates for the hospitality sector by 20% within days, the report states.
Policy blitz follows VAT cut on energy bills
The policy blitz comes on the heels of a VAT cut on energy bills for households, which was announced by newly appointed Labour Party chancellor John Healey. Healey, who entered Number 11 Downing Street last night, said the cut will “bring down inflation while supporting households in every postcode.”
Government borrowing fell by a third in June from a year earlier, according to data from the Office for National Statistics (ONS), as more tax came in and less was spent. Newly appointed Chancellor Healey responded to the data saying “fiscal control” was his “first duty”, and that “fiscal credibility is the bedrock for economic stability and for national security.”
Reactions to the announcements
“The prime minister and I have talked about how we will work in lockstep to meet the fiscal rules with a buffer against uncertainty and how we'll make life more affordable for working people right across the UK,” he added.
Fuel poverty charity National Energy Action praised the VAT cut move, while Liberal Democrats leader Ed Davey said “it's something” but he doesn't think it goes far enough. Darren Jones, sacked yesterday as chief secretary to the prime minister, took to X to write: “Good news that VAT will be cut on electricity bills. It’s a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lower. But the Digital ID program was unfunded. The government will have to set out how it will pay for its new policies at the budget.”
