Andy Burnham’s 10-Year Plan: What We Know So Far

Since Andy Burnham became Prime Minister in July, one phrase has come up again and again: a 10-year plan for Britain. But what it actually means for your finances or your business is less clear.

The short answer is that the full plan hasn’t been published yet. At the Labour Party conference on 29 September, the Prime Minister said: “Later this year, we will publish our plan for Britain and set out how, over 10 years, we will make this country work for you again.”

However, several policies have already been announced, and one is already in force. Many of the remaining details are expected in the Autumn Budget on Wednesday 28 October, which will be delivered by Chancellor John Healey.

So here’s what has been confirmed so far, who it affects and when it’s due to happen:

VAT on household electricity

From 1 October 2026 until 31 March 2027, VAT on household electricity drops from 5% to 0%. This is already law.

It applies in England, Wales and Scotland, while Northern Ireland stays at 5%. 

Electricity that charities use for their non-business activities is also covered. Take note that gas bills aren’t included.

Most business electricity will still be charged at the standard rate. The exception is very small users: if your business electricity already qualifies for the 5% rate under HMRC’s low-usage rules, it drops to 0% as well.

Suppliers work out the VAT based on when the electricity was used, so a bill that covers late September and early October may be split across both rates.

Looking further ahead, the government plans to set up a publicly owned company, the Great British Grid, to speed up connections and bring costs down. The Prime Minister has said he wants UK energy costs to be in line with our European neighbours within 10 years.

Business rates for pubs, clubs and music venues

From April 2027, pubs, social clubs and live music venues in England will get an extra 20% off their business rates bills. The government says around 32,000 venues will benefit, with a typical pub saving about £1,100 a year. Keep in mind that the largest live music venues aren’t included.

The cut will be paid for by reviewing some existing reliefs, with vape shops given as one example, and by tackling online marketplace sellers who don’t pay the tax they owe. 

The government has also said that wider changes to business rates will be covered at the Budget.

More tax kept locally

Mayors in England will keep a bigger share of the tax raised in their area. This starts with business rates from spring 2027, followed by a share of income tax receipts from April 2028.

This doesn’t change how much income tax you pay. 

The government has confirmed that income tax rates won’t change as a result, and mayors won’t be able to set their own rates. How much will be kept locally is due to be confirmed at the Budget.

State pensions and care

The triple lock will stay in place for the rest of this Parliament. 

From April 2030, the state pension will rise each year by at least inflation or 2.5%, whichever is higher. The automatic link to average earnings will end, but the government says it will track the pension against earnings over time and top it up if it starts to fall behind.

The money saved is intended to help pay for a National Care Service, free at the point of use, which the government plans to introduce in the next Parliament. The Prime Minister also said that low-income pensioners will be protected from income tax for the rest of this Parliament.

If you’re planning for retirement, or helping a parent think about the cost of care, this one is worth watching. How the care service will work in practice is still being developed.

Buying a first home

A new scheme called Your First Home is expected to let first-time buyers purchase a new-build home with a 2.5% deposit, backed by a 20% government equity loan. It will only cover homes from developers who have signed up to the scheme.

Income limits, price caps and a start date haven’t been confirmed yet, and are due at the Budget. The government has also promised to bring forward a Leasehold Reform Bill before Christmas.

Young people, skills and employers

The Prime Minister has promised a 45-day work placement for young people between the ages of 16 and 18, and an apprenticeship at 18. He has also said the government will change the way public contracts are awarded so that they back British business.

Timings and details for both are still to be set out. If you employ people, it’s worth knowing that requests for work placements could become more common over the next few years.

If you live or work in Wales

Business rates in Wales are set by the Welsh Government, so the 20% cut for venues and the changes to mayoral funding apply to England only. The same goes for the £2 bus fare cap coming in from January 2027. 

However, the 0% VAT rate on household electricity does apply in Wales.

 

Key dates at a glance

• 1 October 2026: 0% VAT on household electricity begins (England, Wales and Scotland)
• 28 October 2026: Autumn Budget
• January 2027: £2 cap on single bus fares across England
• Spring 2027: Mayors in England begin keeping more business rates
• 31 March 2027: 0% VAT on household electricity ends, unless extended
• April 2027: Extra 20% business rates cut for pubs, clubs and live music venues in England
• April 2028: Mayors in England begin receiving a share of income tax
• April 2030: New rule for state pension increases
• Next Parliament: National Care Service introduced

 

What this means for you

John Farrell, one of our directors at Ellis & Co, mentioned:

“A new government always brings a lot of headlines, and it’s easy to feel you need to do something straight away. Most of what’s been announced so far doesn’t take effect until next year or later, and the Budget on 28 October will tell us a great deal more. For now, our advice is to note the dates that apply to you and have a conversation with us before making any big financial decisions.”

 

Rest assured we’ll be covering the Budget in detail once it’s been announced. 

Until then, if you’d like to talk through how any of these changes might affect you, your family or your business, get in touch with our team in Chester, Wrexham or Warrington.

 

 

About Ellis & Co

Ellis & Co is a leading firm of chartered accountants and business advisers specialising in accountancy & audit, bookkeeping, payroll, tax planning and business advisory services. We work with everyone from start-ups to established companies. With experienced teams in Chester, Warrington and Wrexham, we offer personalised solutions that help businesses succeed.

 

FAQs

Has Andy Burnham’s 10-year plan been published?
Not yet. The Prime Minister said at the Labour Party conference on 29 September 2026 that the plan will be published later this year.

When is the Autumn Budget 2026?
Wednesday 28 October 2026. It will be delivered by Chancellor John Healey.

Does the 0% VAT rate apply to business electricity?
Mostly not. It applies to household electricity and to electricity charities use for non-business activities. Very small business users who already qualify for the 5% rate under HMRC’s low-usage rules will also pay 0%. The cut runs from 1 October 2026 to 31 March 2027 in England, Wales and Scotland.

Will my income tax go up because mayors are keeping more tax locally?
No. The government has confirmed that income tax rates won’t change as a result, and mayors won’t be able to set their own rates.

Does the business rates cut for pubs apply in Wales?
No. Business rates in Wales are set by the Welsh Government, so the extra 20% cut announced in July 2026 applies to England only.

What is changing with the state pension?
The triple lock stays for the rest of this Parliament. From April 2030, the state pension will rise each year by at least inflation or 2.5%, and the automatic link to earnings will end.

When can first-time buyers apply for Your First Home?
A start date hasn’t been confirmed yet. Income limits, price caps and timings are due to be set out at the Budget on 28 October.