PM vows ‘no let-up’ on easing cost of living in new year pitch to voters

Sir Keir Starmer will put the cost of living at the heart of a new year pitch to voters next week with a promise to “make life better” across Britain in 2026.

The Prime Minister will seek to highlight policies like a freeze on rail fares and fuel duty during a number of visits over the coming days, vowing that the changes mean “more people begin to feel that positive change”.

And as MPs return to Westminster from the Christmas recess, he will tell ministers there can be “no let-up” in UK Government plans to ease the financial burden on families.

It comes after a turbulent year for the Labour administration, with sluggish economic growth and leadership rumblings amid dismal poll ratings before the local elections in May.

The UK Government’s decision at the Budget to extend a freeze on income tax thresholds, together with previous extensions, also means millions of people face being dragged into paying higher rates.

Ministers say the changes in the autumn statement, which included overall taxes being hiked by £26 billion, were “fair and necessary” to help cut the cost of living and improve public services.

Sir Keir has acknowledged life is still “harder than it should be” for many Britons, but promised more people will begin to feel “a sense of hope” in the coming months.

Speaking at an event on Monday, the Prime Minister will tell families: “This Labour Government is on your side, doing everything we can to ease the cost of living – and make life better.

“In 2026 the choices we made will mean more people begin to feel that positive change.

“Cutting your energy bills by £150, raising the national living wage.

“We’re helping cut the cost of your commute and the school run too. Freezing rail fares for the first time in 30 years. Capping bus fares. And extending the fuel duty cut until September.”

He will add: “This is real change that you will be able to feel day in day out. Britain is turning the corner and 2026 is the year more people will feel renewal becoming reality.”

“We’ll use every tool we have to help you with the cost of living and make your lives better. That’s my promise to all of you.”

In the first Cabinet meeting of 2026 on Tuesday, Sir Keir will tell ministers: “I know families across the country are still worried about the cost of living.

“There will be no let-up in our fight to make life better for them.”

Tory leader Kemi Badenoch said the Prime Minister “expects gratitude” when “we know it’s his decisions that have made the cost of living worse”.

“The jobs tax pushed inflation to double where we left it, and their net zero rush means energy bills are up over £300,” she said.

“At the same time, working people are paying higher taxes to fund more benefits and more welfare.

“Labour have no plan to fix Britain and working families are paying the price. Only the Conservatives have the backbone to cut spending, cut taxes, and get Britain working again.”