World

Andy Burnham's First Week of Reforms at Downing Street

Herz — World Desk · 25 July 2026 at 04:29 · 30s summary · 3 min read

The essentials

Andy Burnham became Prime Minister of the United Kingdom this week, succeeding Keir Starmer. The former Manchester mayor has announced a flurry of reforms: a 20% reduction in business rates for pubs, a £2 cap on bus fares and scrapping VAT on home energy bills. He has also suspended the early release of some 6,000 prisoners and opened a government office in Manchester to devolve power from London. According to Politico via Handelsblatt, his first days have been described as a '100-meter sprint'.

Andy Burnham succeeds Keir Starmer as Prime Minister of the United Kingdom.
Business rates cut by 20% for 32,000 pubs and concert venues.
Bus fares capped at £2 from January 2027.
VAT removed from domestic energy bills from October.
Early release of approximately 6,000 prisoners suspended.

What we know

Andy Burnham became Prime Minister of the United Kingdom this week, taking office on Monday and succeeding Keir Starmer. According to Handelsblatt, this former Manchester mayor appointed John Healey as Chancellor of the Exchequer — the minister of Finance and Treasury, the country's second most important political position.

Healey had resigned from the Starmer cabinet to protest against cuts to the defence budget.

First announcements

In his first Monday in office, Burnham unveiled a ten-year plan. Its funding will require compromises, given the fragility of the British economy.

He announced a 20% cut in business rates for pubs, clubs and concert venues across England. This measure will benefit approximately 32,000 businesses, according to news agency PA.

From January 2027, bus fares will be capped at £2 (€2.35). This measure will be funded by a reduction in investment in international climate projects.

VAT on domestic energy bills will be scrapped from October. This reform is made possible by abandoning the digital ID card project planned under the Starmer government.

Security and devolution

Burnham has suspended the early release of prisoners that the previous government had scheduled for September. This measure would have affected approximately 6,000 inmates.

On Friday of his first week, he opened 'No 10 North' in Manchester — a government office aimed at devolving power to the regions, mirroring London's 10 Downing Street.

Governance style

To announce the business rates cut, Burnham visited a pub with Healey, pint in hand, and shared the moment on Instagram. The magazine Politico described these first days as a '100-meter sprint'.

Economic and political context

The UK's general tax allowance is £12,500 (approximately €14,700). It has been frozen since 2021 and is not scheduled to rise again until 2031, progressively increasing the tax burden on taxpayers.

The feeling of being forgotten by a London-centric government is one of the factors driving many British voters towards Reform UK — the far-right, populist and eurosceptic British political party.