Andy Burnham, the new MP for Makerfield and anticipated successor to Sir Keir Starmer, is being urged to take bold action on the country’s escalating cost of living crisis. A recent Persuasion UK study, shared with The Guardian, suggests that Labour could win significant support by embracing “cost of living populism,” including an affordable energy guarantee for households.
Miatta Fahnbulleh, an MP and close ally of Burnham, emphasized the urgency of addressing energy bills, stating, “The cost of living is the most pressing issue. This polling confirms that tackling it not only meets public concerns but also makes strong political sense for Labour.”
Amidst this, the Conservative leader Kemi Badenoch has proposed increasing oil and gas drilling in the North Sea to generate additional tax revenue. Her plan includes removing VAT on energy bills and implementing smaller fiscal adjustments designed to cut household energy costs by £200.
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However, the government acknowledges challenges ahead. Cabinet minister Darren Jones highlighted that due to the ongoing impact of the Iran conflict, price hikes are expected to persist for at least eight months after hostilities end. A senior government official attributed prolonged increases in energy, food, and travel costs to geopolitical tensions, noting the “long tail” effect resulting from recent Middle East developments.
Burnham, in his first major speech since returning as an MP, reflected on conversations with constituents facing rising expenses: “People on my doorstep in Makerfield tell me they need extra support now. I will do my very best to deliver that help. While safeguarding public finances, I intend to give Britain some breathing space as soon as possible.”
Sources within the Treasury indicate ongoing work on relief packages. Following Chancellor Reeves’s recent budget measure that reduced green levies and cut the average household energy bill by £150, insiders suggest further reductions are achievable within similar fiscal limits.
With a potential premiership beginning as early as 20 July, Andy Burnham’s handling of energy costs is expected to be a pivotal early challenge, shaping his government’s response to the cost of living crisis.