Andy Burnham latest: PM U-turns on increase to personal tax-free allowance
The Prime Minister has withdrawn suggestions that he would increase the tax-free personal allowance as a way to tackle the cost of living crisis.
Andy Burnham said at the weekend he wanted to bring a “tangible” improvement to the household. Times At Makerfield, “the thing I heard most on the doorstep” was the tax-free personal allowance threshold.
Personal allowance, the amount of income a person can receive annually before they start paying tax on earnings, has been frozen at £12,570 for five years.
But he said in Monday’s U-turn that any change would be expensive and “difficult given the financial circumstances we’re in.”
Mr Burnham announced plans to cap most bus fares in England from January to £2 as part of policies aimed at reducing the cost of living.
The UK government announced that it will make a temporary change in the VAT rate on domestic electricity bills, which has been criticized for being “unfunded”.
Meanwhile, Donald Trump said that he had not forgotten the harsh statements made by Foreign Secretary Ed Miliband and that the White House was “deeply concerned” about this appointment.
Burnham announces £2 bus fare cap
Andy Burnham has announced that most bus fares in England will be capped at £2 from January as part of a wider policy offensive aimed at tackling the cost of living.
Currently, single bus fares across the country are capped at £3 until the end of March 2027.
However, cap prices for single tickets are lower in some areas, such as London and Greater Manchester, where Mr Burnham set a £2 limit as mayor. “Good, affordable transport links are crucial.
No one should be left out or left behind,” Mr Burnham said.
“But people have been saying for too long that cheaper transport is not an option. I don’t accept that. I’ve done it before and I’ll do it again now: a £2 cap on bus fares for millions across the country.”
“Lower wages will help people get where they need to be and give them breathing room to help with living costs.”
It comes after the new prime minister promised at his first Cabinet meeting on Tuesday that his government would give people “the feeling that help is coming”.
The measure is backed by £454 million in funding, including money to allow the devolved governments to take similar action.
Millie Cooke22 July 2026 07:55
Burnham backs down on proposals to increase tax-free personal allowance
Andy Burnham has backed down on a proposal to increase the tax-free personal allowance of £12,570 as part of a plan to tackle the cost of living.
The threshold has been frozen since 2021, meaning more people are being dragged into paying tax as earnings rise due to inflation.
Speaking to The Times at the weekend, the new prime minister said the “disappointment with personal allowances” he heard from voters while campaigning in the Makerfield by-election had “settled in my mind”.
He told reporters on Monday that “all of that will be looked at” in the next budget, but acknowledged that any changes would be expensive and “difficult given the financial circumstances we’re in.”
But Burnham’s allies told the BBC that changes to personal allowances were not part of her initial plan to tackle the cost of living.
Millie Cooke22 July 2026 07:52
