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United Kingdom·Trade & Economy·Democracy

Andy Burnham promises cost-of-living relief and defence funding as he eyes Labour leadership

Friday, 3 July 2026, 06:18 · 2 min read

Andy Burnham, the former Mayor of Greater Manchester widely expected to become the United Kingdom's next prime minister later this month, has set out an ambitious early agenda centred on easing cost-of-living pressures, committing to fully fund a major defence investment plan, and redistributing political power away from London.

Speaking to LBC's Andrew Marr on Thursday in his first interview since returning to parliament as the MP for Makerfield, Burnham outlined a package of measures aimed at putting money back into the pockets of ordinary people and businesses. These include reducing business rates for high street pubs while raising them on large out-of-town warehouses and retail developments, bringing water and energy costs down through greater public ownership of utilities, and making bus travel free for 16- to 18-year-olds. Allies are reportedly pushing for more radical steps, including a freeze on private sector rents and removing green levies from energy bills to be funded through general taxation instead. "Britain is paying too much for the basics," Burnham said. "We do need to be serious about putting more money back into people's pockets."

On welfare, Burnham distanced himself from one of the Starmer government's most controversial decisions, ruling out "crude cuts to benefit levels" that he argued would push struggling people deeper into poverty and generate a justified political backlash. He proposed instead a longer-term approach including building more council homes and expanding non-university educational routes for young people. He said he would broadly "stick by the manifesto" that delivered Labour's 2024 landslide election victory, while identifying space for targeted tax adjustments within it.

Burnham also pledged to take full responsibility for covering a £4.7 billion ($6.2bn) funding gap that has emerged within Prime Minister Keir Starmer's £300 billion defence investment plan — a package designed to modernise the UK's armed forces amid growing concerns about Russia's intentions towards NATO member states. "I will take my responsibilities fully to fund the defence investment plan," he said, calling it something "the country has to face up to very seriously."

The pledges carry significant financial and practical challenges. Experts caution that bringing utilities into public ownership does not automatically lower consumer bills given the scale of infrastructure investment required, particularly in the water sector. Treasury officials have also warned that proposed measures such as raising capital gains tax may not generate the revenue anticipated. Burnham nevertheless insisted he would not breach the government's borrowing rules, pointing to his past experience in the Treasury and running the Department of Health as evidence of fiscal discipline. In a symbolic gesture toward his promise to devolve power from Westminster, he confirmed plans to base part of the Downing Street operation at a new digital campus near Manchester Piccadilly station.

Sources
Al Jazeera EnglishUK’s likely next leader Andy Burnham vows to fully fund defence plans ↗︎The GuardianBurnham promises to ease cost of living pressures if he becomes prime minister ↗︎
This article was automatically compiled by AI from the sources above. It may contain inaccuracies. Always read the original sources for the full context.