What does an Andy Burnham-led government mean for your money?

Andy Burnham became Prime Minister in July 2026, and his early announcements already point to changes that could affect your household budget and your mortgage. Here at Euxton Mortgage Market, we've been looking at what a Burnham-led government could mean for you, whether you're in Euxton, Leyland, or anywhere else across the UK weighing up your next move on the property ladder.

Energy bills and everyday costs

One of Burnham's first acts as Prime Minister¹ was cutting VAT on domestic electricity bills from 5% to 0% from the 1st of October, a move the government says will save a typical household around £45 a year. He's also confirmed a £2 bus fare cap will return in January, alongside a freeze on rail fares in England, both aimed at giving people more breathing space with their finances.

These are welcome steps, but cutting VAT is a blunt tool. It's the wholesale price of gas, not government policy, that mostly decides which way energy bills move. Citizens Advice has warned that although bills have dropped back from their 2023 peak, they remain far higher than they were five years ago, leaving many households with mounting debt.

Tax thresholds and take-home pay

Burnham has said he'll look at raising the income tax personal allowance, but he hasn't yet promised a date for this. Income tax and National Insurance thresholds are currently frozen until April 2031, meaning more of your income gets taxed each time your wages rise. Any reversal would need to be funded elsewhere, so it's one to watch rather than bank on for your household budgeting.

What it could mean for mortgages and house-buying

For anyone weighing up a purchase or a remortgage, the housing angle matters most. Burnham has pledged to build more council homes, one part of a wider affordable housing picture. Building societies are reportedly pushing for looser lending rules, which could open up options for buyers with smaller deposits.

Ultimately, the cost of borrowing will depend on how markets respond to the new government's spending plans. That's where working with a broker who understands the local market, from Chorley to Bamber Bridge, can make a real difference as the wider picture becomes clearer.

A few practical takeaways:

• Energy savings from the VAT cut are modest, so don't rely on them alone to ease pressure.
• Frozen tax thresholds mean your take-home pay may not stretch as far, even without headline tax rises.
• Watch for lending rule changes, which could affect deposit requirements.
• Speak to a broker before assuming what you can or can't afford has changed.

At Euxton Mortgage Market, based at Hearle House on Euxton Lane, we keep a close eye on how government policy filters through to mortgage rates and lending criteria. Whether you're a first-time buyer in Croston or looking to remortgage in Adlington, get in touch with our team and we'll help you make sense of what it means for your money.

Sources:

1 https://www.bbc.com/news/articles/cp9ezldrkkgo 

All the information in this article is correct as of the date of publishing. The opinions expressed in this publication are those of the authors Euxton Mortgage Market. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

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August 2026