Prime Minister Andy Burnham’s government faces its first budget on Oct. 28 after announcing cost-of-living measures and a proposed National Care Service. Chancellor John Healey has said the budget will meet the government’s fiscal rules.
An Ipsos survey of 2,284 British adults conducted Sept. 18-23 found that 39% viewed Burnham favorably and 32% unfavorably. Labour’s ratings were 30% favorable and 42% unfavorable. On the government’s effort to reduce living costs, 55% said it was doing a bad job and 16% said it was doing a good job.
The government has begun a temporary cut in value-added tax on qualifying electricity supplies in England, Scotland and Wales. The rate fell from 5% to 0% on Oct. 1 and is scheduled to remain there through March 31, 2027. The government estimates the measure will cost about £850 million in fiscal 2026-27 and reduce the yearly Ofgem price cap by about £45. That is a projected change to the cap, not a measured saving on every household’s bill. The government says it will fund the cut by canceling its Digital ID programme. Northern Ireland’s rate remains 5%, with comparable household support promised there.
Other relief is planned for later. A £2 cap on participating bus fares in England outside London begins Jan. 1, 2027, backed by £400 million in additional funding. An additional 20% reduction in business rates for eligible pubs, social clubs and live music venues in England is scheduled to start in fiscal 2027-28.
Burnham has proposed a National Care Service in the next Parliament, offering free personal care to older people based on need. The government plans to change the state pension’s triple lock from April 2030 and estimates that the change would reduce pension spending by £15 billion a year by the end of the 2030s to help fund the service.
In separate polling by Ipsos and the National Institute of Economic and Social Research, 65% of British adults surveyed Oct. 9-13 expected taxes to rise in the budget. That result reflects public expectations, not a Treasury decision. Healey has said the budget will meet the government’s fiscal rules. The Office for Budget Responsibility is due to publish updated economic and fiscal forecasts alongside it on Oct. 28.
