Andy Burnham has been in Downing Street for barely two weeks, but his premiership has already triggered a wave of change and a flurry of debate. From reshaping everyday household costs to promising a fresh approach to regional government, the new Prime Minister has moved at pace, announcing a series of measures aimed at easing financial pressures and supporting communities.
In his first fortnight, Burnham has unveiled a £2 bus fare cap across England, scrapped the 5% VAT on domestic energy bills, introduced a 20% business rates cut for pubs, clubs and live music venues, expanded his ministerial team and opened No 10 North, becoming the first Prime Minister to operate from the new regional hub.
The speed and scale of the announcements have placed Burnham’s early leadership under spotlight. As households, businesses, industry leaders and community members assess what the changes mean in practice, reactions have been mixed, with some welcoming a renewed focus on affordability and local economies, while others question the long-term impact and cost of the reforms.
Here’s how industry voices and community leaders are responding to Burnham’s early moves in government and what they hope his next steps will bring.
20% boost for pubs
The government has unveiled a £100 million support package that will give pubs, clubs and live music venues across England a 20% discount on business rates, in a bid to revive high streets and ease mounting financial pressures on the hospitality sector. The Prime Minister said the fully funded measure would help businesses manage rising costs while supporting consumers through the cost-of-living crisis.
While the announcement has been welcomed, industry leaders warned businesses should not bank on the relief just yet. Harvey Dhillon, founder and CEO of Zmartly, described the move as "good news for pubs" but cautioned that it will not come into force until April 2027. "It is a round on the house that will not be poured until April 2027," he said.
Dhillon estimated the proposed 20% reduction would save a typical pub around £1,100 annually, or roughly £21 a week, but stressed the policy remains subject to legislation and Budget confirmation. "Budget on the 15% relief announced in January for your 2026/27 bill," he advised. "Treat the 20% as a promise, not money in the till."
Enterprise Nation chief operating officer, Polly Dhaliwal welcomed the package, saying it would give nearly 32,000 hospitality and entertainment venues greater certainty. She also praised government action to tackle online sellers avoiding tax, adding that meaningful reform of Small Business Rates Relief at the Budget would be crucial for smaller firms.
Not everyone was convinced. Satnam Purewal, landlord of the Red Lion in West Bromwich, called the announcement "mainly a smoke screen", arguing it would barely dent the financial strain facing pubs.
"My business rates jumped from £50,000 a year to £115,000," he said. "Even with a 20% discount, I'm still paying £30,000 to £40,000 more than I was before."
Purewal said soaring food, energy and staffing costs continue to erode margins, leaving businesses unable to keep increasing prices. Instead of business rates relief, Purewal urged the government to reduce VAT for hospitality. "Across Europe, hospitality businesses pay about 10% VAT. Here it's 20%. Bringing it down to 10% would make a massive, meaningful difference and actually make businesses financially viable."
He warned that hospitality underpins local economies. "People go into town to eat, drink, watch live music or go to the theatre. If those venues disappear, city centres suffer too."
NIC cap raises pension concerns
The government’s planned overhaul of pension salary sacrifice arrangements has sparked fresh concern among pensions professionals, who warn the move could weaken one of the most effective incentives for workplace retirement saving.
From April 2029, National Insurance contributions (NICs) will no longer be fully exempt on pension payments made through salary sacrifice. Instead, the exemption will be capped at the first £2,000 of annual pension contributions, with any amount above that subject to both employee and employer NICs. While income tax relief on pensions will remain untouched, experts say the change could significantly reduce the financial appeal of salary sacrifice schemes, particularly for higher earners who gain the most from NIC savings.
A poll conducted during a Society of Pension Professionals (SPP) webinar found that nearly two-thirds of attendees want the reforms abandoned. Some 62% called for the plans to be scrapped, while only 5% supported them in their current form. A further 24% backed changes to the proposals, while 9% said pension salary sacrifice should be removed altogether.
Steve Hitchiner, an SPP member who chaired the event, said the results showed “strong support for rethinking these reforms”. He warned the changes could lead to “higher costs to employees... and employers, along with less pension saving when more saving is needed”.
Hitchiner said limiting the NIC exemption from 2029 “risks undermining those benefits” and could discourage employers from continuing to offer salary sacrifice arrangements. He called on the Prime Minister and Chancellor to engage with the pensions sector to find alternatives that protect retirement saving while avoiding further financial pressures on workers and businesses.
Electricity VAT cut offers modest relief
London households will see a small reduction in their electricity bills from 1 October as the government removes the 5% VAT charge on electricity, but the savings are unlikely to make a major dent in the cost-of-living pressures facing families.
The measure is expected to save a typical household around £45 a year, equivalent to just over 86p a week. With the average London electricity bill estimated at about £875 annually, or roughly £73 a month, according to EDF Energy, the cut will apply only to electricity charges and will not extend to gas bills.
While the move provides some immediate relief, experts warn that its impact will be limited for households struggling with rising expenses.
England’s bus fare reset
Bus fares across England will be capped at £2 from January under plans announced by Prime Minister Andy Burnham, reversing the previous government's increase to £3.
The government said the policy, expected to cost more than £500 million, is designed to ease cost-of-living pressures by making public transport more affordable. The nationwide fare cap was raised to £3 at the start of last year under Sir Keir Starmer's Labour government, although passengers in Liverpool and Manchester continued to benefit from a £2 cap.
Announcing the measure, Burnham said affordable public transport was essential to connecting people with jobs, education and services. "Lower fares will help people get to where they need to," he said, describing the policy as part of the government's wider effort to support households with everyday costs.
Training plans tackle youth unemployment
Burnham has also outlined plans to better align technical education and training with local labour market needs, aiming to reduce youth unemployment by equipping young people with skills for an AI-driven economy.
The UK has seen youth unemployment worsen since the Covid-19 pandemic, with more than one million people aged 16 to 24 now classified as not in education, employment or training (NEET). Among 18 to 24-year-olds, the NEET rate stands at 15.8%—more than three times that of the Netherlands, which ministers have increasingly pointed to as a model for reform.
Seeking to deliver swift results after years of political instability and stagnant living standards, Burnham's government argues that artificial intelligence is reshaping the labour market, increasing demand for technical skills while creating new opportunities in traditional trades.
To support the transition, the government has announced an apprenticeship bursary of up to £4,500 and pledged £287 million to fund more than 22,000 additional college places.
The plans come amid growing scrutiny of the welfare system. Reports suggest some teenagers receiving sickness benefits for conditions such as anxiety receive around £100 a week more than part-time workers on the minimum wage. Burnham has signalled he is prepared to tighten eligibility rules, saying the UK must "get really serious" about bringing down the welfare bill.
