By GB News (Politics) | Created at 2026-07-22 06:33:22 | Updated at 2026-08-04 04:37:37
1 week ago
Andy Burnham has admitted his Cabinet must make "difficult decisions" ahead of a massive spending spree to support the cost of living.
The new Prime Minister told his top team they would need to provide ideas on measures each of their departments could use to "take that little bit of pressure off people’s shoulders".
He added his Government would have to make cuts to focus on his priorities, including a £340million investment to end rough sleeping and a £850million plan to cut energy bills.
This morning, Mr Burnham confirmed single bus fares across England will be capped at £2 from January next year – a measure backed by £454million of funding.
Later today, Business Secretary Jonathan Reynolds will announce a £600million package to back British aerospace, including some £500million for aerospace research and technology projects for greener air travel and £100million for a supply chain fund to help meet demand.
Speaking to his own ministers, Mr Burnham said: "We have to take a really hard look at what our priorities are and if we are to deliver on the cost of living and reducing the pressure, then we have got to be prepared to reprioritise.
"We have got to show fiscal discipline, we have got to show our commitment to the fiscal rules is real and that we are prepared to make difficult decisions in relation to that."
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Anas Sarwar set to become a minister
Scottish Labour leader Anas Sarwar is to be made a peer and appointed as a minister by Andy Burnham.
Mr Sarwar will be elevated to the Lords and is expected to take up a ministerial post at the revamped Department for Business, Innovation, Science and Trade, headed by Jonathan Reynolds, sources have told the Press Association.
It comes as Mr Burnham made a raft of ministerial appointments on Tuesday night and after he unveiled his Cabinet, which marked a clearout of loyalists to his predecessor Sir Keir Starmer.
Mr Sarwar, who has been Scottish Labour leader since 2021, was among the first to call for Sir Keir to stand down in February.
He hailed successor Mr Burnham for his “bold Labour vision” as he entered No 10 this week.
John Healey welcomes 'win-win' inflation figures
John Healey has welcomed today's inflation figures as a "win-win" but warned there was "much more to do."
The newly appointed Chancellor said: "Falling inflation is news families want to hear but there is much more to do to give people the breathing space they need.
"That is why yesterday we cut VAT on electricity bills and today we’re announcing a £2 cap on bus fares from January.
"We have chosen to focus on the cost of living in our first week, signalling that concern for working people will be at the heart of everything we do.
"Both these changes are a win-win. They help keep inflation down while helping people afford the essentials."
Bus fares capped at £2 across England in major 'cost of living' push
Bus fares are set to be capped
PA
Single bus fares across England will be capped at £2 from January, Andy Burnham has announced.
The nationwide cap is currently set at £3 until the end of March 2027.
But some areas, including London and Greater Manchester, where Mr Burnham set a £2 limit as Mayor, have lower top rates for single tickets.
UK inflation falls to 2.6% as fuel and food prices ease
The rate of Consumer Prices Index inflation fell to 2.6 per cent in June from 2.8 per cent in May, the Office for National Statistics said.
The Consumer Prices Index (CPI) recorded an annual inflation rate of 2.6 per cent in June 2026, down from 2.8 per cent in May.
The rate has not been this low since December 2024, when inflation stood at 2.5 per cent.
