Burnham announces energy relief and cheaper bus tickets as first official acts

As a second measure, single journeys across England are to cost no more than £2 (£2.35) from January 2027. The previous price cap was £3 (£3.52). Burnham said: "Good, affordable transport connections are a basic need. No one should be excluded and left behind because of cost." The announcement was made, according to the British news agency PA.

Bus travel in England to become cheaper

Burnham promised citizens more "breathing room" amid the cost of living crisis. He also hinted that the personal tax allowance, currently at £12,500 (around €14,700), could potentially be raised as well. However, people close to Burnham subsequently distanced themselves, according to British media, from considerations of actually raising the tax allowance quickly.

The financing of the announced measures is closely tied to political priorities. The abolition of VAT on energy is to be funded by abandoning the digital ID planned by predecessor Keir Starmer. The reduction of the bus ticket price cap, on the other hand, is to be funded by cuts to investments in international climate protection projects.

Financing through renunciation and cuts

According to the facts, the British government's financial room for manoeuvre is severely constrained by high public debt. The personal tax allowances and the threshold amounts in the United Kingdom's progressive income tax system have been frozen since 2021. A regular adjustment of the thresholds is not scheduled again until 2031, according to the available information.

In practical terms, the frozen system means that the tax burden on individuals has been rising steadily for years, as pay rises or inflation push people into higher tax brackets without the allowances being adjusted. The announced relief on energy and bus travel must therefore be seen against the backdrop of this creeping additional burden.

Frozen tax allowances as background

With the staggered timing – abolition of VAT on energy from October, new bus ticket price cap from January 2027 – the new government is banking on quick, visible relief for the population. The abandonment of the digital ID project, on the other hand, is likely to have financial effects only in the medium term, as funds already earmarked will have to be redirected.

Reactions from business and the opposition to Burnham's first acts in office were not yet fully foreseeable at the time of reporting. Observers pointed out that financing the measures through cuts to international climate protection investments could be politically controversial. Burnham's own signal, however, was clear: affordable mobility and energy should take priority over other items of expenditure.

Overall, the two announced measures demonstrate the new government's effort to provide swift and concrete relief for people's everyday lives. Whether the announced price reductions will actually be implemented as planned now depends, among other things, on parliamentary approval and further budget planning.