Prime Minister Andy Burnham and Chancellor John Healey are preparing for their first Budget announcement scheduled for 28 October, facing significant decisions on addressing the ongoing cost of living crisis. Since taking office, Burnham has employed a “rolling-thunder” strategy of frequent daily announcements aimed at reassuring the public of the government’s commitment to easing financial pressures.

In recent statements, both Burnham and Healey have indicated that additional measures to mitigate the rising cost of living are under consideration. Burnham has signaled plans for further interventions “across the piece,” a position echoed by Healey in a recent opinion piece.

Energy bills remain a central concern. In the spring, former Chancellor Rachel Reeves outlined a preference for targeted support over a broad universal scheme like that introduced by Liz Truss in 2022, which proved costly. The approach under review would concentrate aid on those receiving means-tested benefits, as the government currently lacks comprehensive income data to tailor support more precisely to household earnings.

The timing of any intervention on energy bills poses a challenge due to volatile energy prices influenced by geopolitical developments, including the ongoing conflict involving Iran and fluctuating market reactions to political commentary.

Funding these potential cost-of-living measures is another key issue. Burnham may consider an increase in capital gains tax following advice from former Labour leader Neil Kinnock, whom Burnham credits as a political inspiration. Kinnock has advocated for such a tax adjustment as a means of financing additional support.

As the 28 October Budget approaches, Burnham and Healey are expected to face continued pressure from various stakeholders and advisers, navigating a complex economic landscape to deliver relief for households while managing fiscal constraints.