Andy Burnham implores cabinet to examine ‘all possible ways’ to tackle cost of living crisis

Andy Burnham has told his new cabinet to explore “all possible ways” to address the cost of living crisis, as questions intensify over how his government will finance a set of early policy pledges.

According to a monitored public feed based on reporting from The Guardian Business, Burnham is under growing pressure to explain the funding behind his plans, including the removal of VAT from electricity bills and an expected increase in defence spending. The issue has already become politically sensitive, after the matter contributed to the resignation of his new chancellor, John Healey, who had previously served as defence secretary under Keir Starmer.

The prime minister’s first full day in office was marked by a sharp focus on fiscal credibility as well as his promise of a “cost of living government.” Rather than offering firm details on where the money will come from, Burnham appears to be asking his cabinet to consider a broad range of options as he tries to shape an immediate response to household pressures.

The feed summary suggests that the funding debate is emerging early in the new administration, with critics pressing for clearer answers on how ambitious social and spending commitments can be reconciled with the government’s wider budget constraints. The questions around electricity bills and defence outlays point to an immediate test of how Burnham intends to balance relief for families with demands on public finances.

No further details were provided in the monitored feed about specific revenue measures, spending cuts, or tax changes. The report is based on a monitored public feed and reflects the information available from the source summary.

Source: The Guardian Business - https://www.theguardian.com/politics/2026/jul/21/defence-uplift-national-care-service-andy-burnham-policies-funding