New prime minister Andy Burnham has used his first days in office to announce a series of policy pledges focused primarily on reducing living costs for households, framing his administration as a "cost of living government". Speaking after taking over from Sir Keir Starmer, Burnham said he wants to deliver the "biggest changes in the last 40 years" by reversing economic policies dating back to the Thatcher era, though most confirmed measures so far are near-term commitments due to take effect by next April.

Confirmed policies include scrapping VAT on household electricity bills from October, expected to save the average household £45 and costing around £850 million, funded by cancelling the planned Digital ID programme. He has also reinstated the £2 bus fare cap, pledged £340 million to help end rough sleeping by providing 1,200 homes and support for at least 3,000 long-term rough sleepers, established a "Number 10 North" outpost in Manchester, and announced a 20 per cent cut to business rates for pubs, clubs and music venues, saving the typical pub an estimated £1,100 from April.