Andy Burnham government: Who could be the winners and losers in London?

Andy Burnham hit the ground running by axing VAT off electricity bills for households on his first full day in No10.The former Greater Manchester Mayor is expected to announce a slew of other measures to ease the cost of living for millions of households.He has promised to deliver "the most significant change moment in our politics for 40 years".Prime Minister Andy BurnhamPA WireBut there are few details yet of how he will deliver his blueprint for Britain, or pay for it, when confronted by the torrent of hard choices in Government.Here are some areas where his plans could have a major impact on London:Electricity billsVAT will be removed from domestic electricity bills from October 1. It is estimated that the change will reduce the annual Ofgem price cap by around £45 from October, with companies expected to pass the reduction onto customers.“Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.”The move is said to be funded by cancelling the Digital ID programme.TaxesBut he has also hinted taxes could go up for wealthier households, saying his Government "might be having to ask for a little more" as it seeks to plough billions more in public spending to boost Britain’s regions.Andy Burnham previously backed replacing council tax and stamp duty with a new levy based on the value of propertiesPA WireRead MoreAlternatively he could lower the threshold for paying the “mansion tax” from £2 million to £1.5 million, cut the threshold for paying the 45p top rate of income tax, increase levies on banks, or introduce a form of wealth tax.He did not rule out bringing back the 50p top rate of tax.House pricesIf Mr Burnham did press ahead with a new property tax, some reports suggest it could knock 20% off house prices.House prices have already been falling in London for months and thoughts of further drops are likely to alarm many homeowners, especially with large mortgages.House prices have been falling in LondonAFP/GettyHis case is that if there is less migration to London from the regions, as their economies pick, there will be less upward pressure on housing costs in the capital, less transport overcrowding and other strains on the city.Job cutsPeckham MP Miatta Fahnbulleh, former head of the New Economics Foundation, has suggested central Government will be “far smaller” and play a more “strategic” role in future.Andy Burnham says he will move jobs out of WhitehallIt is not yet clear how Mr Burnham’s plans will impact on private sector jobs, and some bosses are nervous given the damage inflicted on businesses by Chancellor Rachel Reeves’ £20 billion hike in National Insurance contributions for employers.InequalityMr Burnham has vowed to govern for the whole of the UK but with a specific focus on helping left-behind communities.After being re-elected to Parliament, he said he would be guided on this by his “Makerfield test”, named after the seat he had just won.London, though, has the highest unemployment in the country, at 6.6%, according to the Office for National Statistics, compared to 5% in the North West, and 2.9% in the Wigan area which includes part of the Makerfield constituency. Alexandra Road Estate in north London In Pictures via Getty ImagesAt the same time the capital has huge wealth in what has been slammed as “grotesque” inequality.It is not yet clear how levelling up London’s deprived communities will be part of Mr Burnham’s plans.Rough sleepingMr Burnham pledged to end rough sleeping in London and other parts of the country in his first commitment as Prime Minister.Speaking outside No10, after being invited to form a Government by the King, Mr Burnham said: “I will soon go through that door behind me and issue my first instruction to end rough sleeping in our country.”He announced a further £340 million as a first step to getting homes for thousands of people living on the streets.TransportSir Sadiq stressed: “It's crucial that the new Labour leader invests in every part of the country.“This includes London, which is central to delivering for the rest of the country.”Sir Sadiq Khan has urged Andy Burnham not to reduce investment in LondonPA WireBosses in the capital have also urged Mr Burnham to back airport expansion at Heathrow, Gatwick and Luton airports, as well as the Bakerloo Line and DLR extensions.Housing crisisAs part of of Mr Burnham’s devolution of power, Sir Sadiq is set to get more power over housing and education.The capital could see more radical action to get more council, affordable and other homes built.As mayor, Mr Burnham championed improving conditions for renters in Manchester, signing an open letter a few years ago to the Government calling for a freeze on private sector rents.Speaking shortly after becoming PM, he kept open the option of a rent freeze, saying: “We are looking at measures that could make a difference this year.”Thames Water scandal But nationalising the stricken utility may leave the taxpayer having to pick up a bill of £20 billion.So, the new Government may decide to put Thames Water into a Special Administration Regime to keep supplies flowing while a new buyer is sought, though even that could cost £2 billion.Heathrow third runwayMr Burnham warned eight years ago that expanding Heathrow could “suck more activity and investment into the capital and leave the North waiting even longer for its promised Northern Powerhouse”.A plane coming into land at Heathrow airport over nearby housingGettyFormer Transport Secretary Louise Haigh and Net Zero Secretary Ed Miliband, who are both expected to play key roles in his Government, have previously stressed that a bigger Heathrow must meet climate change and air pollution tests.