# Andy Burnham latest: New PM warned spending spree ‘will force tax rises’ as rate cut for pubs announced

- URL: https://talkfuse.com/story/andy-burnham-latest-new-pm-warned-spending-spree-will-force-tax-rises-as-rate-cut-for-pubs-announced/
- Published: 2026-07-23T06:53:57+00:00
- Updated: 2026-07-23T07:03:42+00:00
- Original publisher: The Independent (publisher lean: Left)
- Original article: https://www.independent.co.uk/news/uk/politics/andy-burnham-tax-pubs-uk-cabinet-labour-live-updates-b3019992.html
- Topics: Entertainment, Music, Politics, UK, World

## Key points

- Economists warn Burnham's early pledges may force tax rises
- Business rate cuts for pubs, clubs, venues to cost £100m yearly
- Bus fares capped at £2 from January; VAT cut on electricity

## Summary

Economists have warned that Prime Minister Andy Burnham's early policy announcements will likely require tax rises to fund, just days after he entered No 10. The Resolution Foundation told the Telegraph that Chancellor John Healey may need to raise taxes "significantly" to cover the cost of Burnham's cost of living pledges, raising questions about how the new government intends to pay for its early commitments.

Burnham has announced a 20 per cent business rate cut for pubs, clubs and live music venues, a VAT cut on electricity bills, and a cap on bus fares at £2 from January, alongside pledges to fix social care and ease living costs more broadly. The business rate cuts alone are expected to cost around £100 million a year. James Smith, chief economist at the Resolution Foundation, said the scale of these commitments could mean the Budget needs to be "significantly revenue-raising" to cover the big-ticket items.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.