Andy Burnham Brings £2 Bus Fares to All of England

Good news if you rely on the bus to get around: single bus fares are being capped at £2 across England from January 2027. The announcement came from Prime Minister Andy Burnham, who wasted no time making his mark, revealing the policy on just his second full day in office.

The move is backed by £400 million in government funding and will cut the current £3 fare cap by a third, putting more money back in the pockets of millions of everyday passengers. To give local authorities the breathing room they need to plan ahead, the cap will also be extended through to the end of 2027, rather than expiring mid-year.

Read more: £2 Bus fares

From Mayor to Prime Minister: Burnham's Bold Opening Week

Andy Burnham has wasted absolutely no time settling into his new role. After winning the Labour leadership and stepping up to become Prime Minister, the former Greater Manchester Mayor hit the ground running with a flurry of announcements that signalled a sharp change in direction for the country.

In his inaugural speech on Monday, Burnham set out an ambitious and, frankly, sweeping vision for his government, promising to deliver what he called the biggest changes in 40 years. The target was unmistakable: the economic legacy of the Thatcher era, which shaped British life through the 1980s and beyond, was firmly in his sights.

"The biggest changes in the last 40 years." Andy Burnham, inaugural speech as Prime Minister

The very next day, at his first cabinet meeting, Burnham made his governing philosophy crystal clear, telling ministers that this would be a "cost of living government". That phrase set the tone for everything that followed, with policy announcements focused squarely on easing the financial pressure that millions of households are feeling right now.

One of the more symbolic moments of the week came on Friday, 24 July 2026, when Burnham held his first meeting at No 10 North, the new Manchester-based outpost of Downing Street. He had long championed the idea of decentralising power away from Westminster, and this was a very visible, very deliberate statement that he intends to follow through on that promise.

Experts have noted that the pace of announcements has been striking, though some caution that turning bold rhetoric into lasting reform will require handling some serious financial constraints in the months ahead.

Cutting Everyday Costs: Bus Fares, Energy Bills, and Rough Sleeping

If there is one message Andy Burnham wants to send with his early days in Downing Street, it is this: your household bills matter. Describing his administration to cabinet as a "cost of living government", the new Prime Minister has moved quickly to back those words with concrete action, rolling out a series of measures designed to put money back in people's pockets before next April.

Back to £2 on the Bus

One of the most immediately visible changes is the reinstatement of the £2 bus fare cap in England, which Burnham announced on the third day of his premiership. His predecessor, Sir Keir Starmer, had allowed the cap to lapse, and Burnham wasted little time reversing that decision. Part of the funding comes from switching grants for international climate projects to repayable loans rather than outright gifts. As Burnham put it plainly:

"Good, affordable transport links are an essential. No-one should be priced out of those and left behind." Andy Burnham, Prime Minister

Cutting Your Electricity Bill

From October, VAT on household electricity bills will be scrapped entirely, a move the government says will save the average household around £45 a year. The Treasury estimates the policy will cost roughly £850 million this financial year, funded by cancelling the previous government's planned Digital ID programme. It is a straightforward saving that does not require you to do anything at all.

A Serious Plan on Rough Sleeping

Burnham also used his inaugural speech to make ending rough sleeping a defining mission of his government. A £340 million funding package has been announced to acquire suitable homes, identify those most at risk, and begin providing housing and intensive support without delay. Over a five-year period, the funding is expected to deliver 1,200 homes and wrap-around support for at least 3,000 long-term rough sleepers across the country.

Taken together, these early pledges sketch out a clear picture of a government keen to demonstrate that politics can still improve daily life in tangible, measurable ways.

Tax, Business Rates, and the Income Allowance Freeze Question

If you run a pub, a music venue, or a local club, you may already be feeling a little more optimistic about the year ahead. Andy Burnham has confirmed that business rates for pubs, clubs, and music venues in England will be cut by 20 per cent from April, delivering on a pledge he made during the campaign trail. According to the government, the typical pub stands to save around £1,100 as a result of the change.

The £100 million package is described as fully funded, which matters a great deal given the fiscal tightrope Burnham is walking. Part of the money will come from a review of tax reliefs currently enjoyed by businesses that, in the government's words, do not make a positive contribution to local communities. Vape shops have been cited as one example of businesses that could see their reliefs reduced to help pay for the cut.

It is a targeted measure, and deliberately so. Rather than broad tax giveaways, Burnham's team appears to be making carefully costed, sector-specific choices to ease pressure where it is felt most acutely.

On the thornier question of income tax, however, the picture is less straightforward. The personal allowance, which is the amount you can earn before paying income tax, remains frozen at £12,570. Burnham had previously suggested he would look at unfreezing it, but the new government has so far indicated that fiscal pressures make that a difficult commitment to honour in the short term. It is a notable U-turn, and one that critics are unlikely to let pass quietly.

This will be a "cost of living government." Andy Burnham, speaking to his cabinet

Balancing ambition against the books is the central challenge of Burnham's early days in Number 10, and the income allowance question shows just how hard that balancing act can be in practice.

No 10 North and the Devolution Agenda

One of the most eye-catching moves Andy Burnham has made since entering Downing Street is the creation of a northern outpost of his own office, based in Manchester. Dubbed "No 10 in the North," the operation is already up and running, with staff drawn both from Manchester itself and from other parts of the country. The exact address has not been officially confirmed, but it is widely believed to be Heron House in the city centre. Burnham himself plans to work from the location one day a week.

The Prime Minister was quick to push back against sceptics who might see it as a symbolic gesture rather than a genuine shift in how government operates.

"This is not a gimmick," Burnham told reporters on Tuesday, adding that staff are already working from the new base. PA Wire

For those who have followed Burnham's career, none of this comes as a surprise. His years as Mayor of Greater Manchester made devolution, public ownership, and bringing decision-making closer to communities something of a personal mission. The idea that power should sit closer to the people it affects has been a consistent thread running through almost everything he has done politically.

However, analysts are already raising questions about how far this agenda can realistically go. Financial constraints are a real factor, with experts warning that some of his broader pledges may be difficult to deliver in the short term given the pressure on public finances. The ambition is clear, but turning a symbolic northern outpost into a genuine engine of devolved power will take more than a shared office space in Manchester.