Andy Burnham is mired in confusion over his tax policy today after mixed messages on whether he could end the freeze on thresholds.The PM had made clear twice since entering No10 that he wanted to increase the personal allowance, saying the issue had 'lodged in his mind' after being repeatedly flagged on doorsteps.Overnight aides poured cold water on the prospect of the change happening any time soon, with even small hikes costing the Treasury billions of pounds a year.However, Mr Burnham has now insisted the issue will be considered at the Budget this Autumn - and tried to blame the media for the chaos.On a visit in the South West today, the premier said: 'Well, it's funny these days you can't answer a question honestly without then people reading everything else into it.'He added: 'I want to answer questions honestly in this job, as I said before.'I think that's all about trust in politics and doing politics differently, and I'm determined to keep keep working in that way.'It was raised a lot, but I then went on to say, ''But we'll have to look at it at the budget alongside everything else''. So no commitment, no unfunded promise.'It's just perhaps the way politics is these days and the way people report things, but that was an honest answer. There is no commitment at this point to change, but we will look at that at the Budget.'The freeze has been in place since 2022, and is due to remain until 2031, dragging millions of people deeper into the tax system in one of the biggest ever revenue-raisers. Mr Burnham also appeared to execute another volte face this morning as he suggested there will be no new funding for council housing, despite pledging the biggest construction drive in history.Instead he indicated existing funding for social housing will be redirected to council housing. The backtracking comes as Mr Burnham announced his latest 'cost of living' help is capping single bus fares at £2 from January, instead of the £3 currently applied across much of the country.Andy Burnham had made clear twice since entering No10 that he wanted to increase the personal allowance, but aides poured cold water on the idea overnightHowever, questions have already emerged about how the £454million funding for the measure is being found.The Government says some £400million will come from switching international climate grants to loans, but it appears that will still require more borrowing. The rest is from underspends in the Net Zero Department budget.Mr Burnham told the first meeting of his Cabinet yesterday that they must 'always show how they are going to pay' for policies.Stressing his commitment to the Treasury's fiscal rules, Mr Burnham said: 'Always we will show how we are going to pay for it, what we are reprioritising. That will be a theme that we will always come back to.' Despite the vow, a plan to knock 5 per cent VAT off domestic electricity bills was thrown into chaos after it emerged the £850million funding had not been earmarked. The Government insisted it will be paid for by axing Keir Starmer's ID cards scheme. But Darren Jones – who was brutally sacked from the Cabinet by phone in Mr Burnham's purge of Starmer loyalists on Monday – warned that policy was unfunded. As a result, new Chancellor John Healey faces having to find the cash at the Budget, heaping more pressure on the public finances. Speaking to broadcasters on a visit to the South West this morning, Mr Burnham batted away questions about the funding insisting he will 'always be honest with the public'.'This week, the three policies I've announced – ending rough sleeping, the bus cap we're announcing today and the removal of VAT off electricity bills – are all fully funded, and that's the way I will go,' he said.'And people will say, ''Well, how?'''I've reprioritised. The public's priority is reducing cost of living pressures and that's what I'm doing.'I'm taking a difficult look at some of the things that the Government was committed to, digital ID being one example, and reprioritising.'And I think that's what people would expect me to do coming into this job.'Turning to his council house pledge, Mr Burnham said: 'When you talk about council housing, it's about putting greater priority on council housing,' he said.'The Government had already allocated £39billion to housing over 10 years.'My instruction on coming into this job is to spend a greater proportion of that funding on new council housing because that gives the biggest return on investment than anything else.'There was slightly brighter news for Mr Healey this morning as official figures showed inflation dipping to 2.6 per cent in June.However, there are fears that renewed turmoil in the Middle East could mean prices accelerating again. The £2 bus fare cap will be in place from January, and last through 2027.An equivalent cap had been in place nationally between January 2023 and December 2024 but the incoming Labour administration argued it was not affordable.Some metro mayors, including Mr Burnham, decided to fund an extension of the lower limit in their areas.Mr Healey said 'millions of people' would benefit from fares being slashed by a third and insisted the measure could be paid for.'This action to ease the cost of living is funded by savings made elsewhere, so there's no burden to British taxpayers, just pounds going back into their pockets,' he said.Transport Secretary Heidi Alexander said the move would make 'everyday journeys easier and cheaper'.Meanwhile, Mr Burnham is continuing to put in place his ministerial team, with Scottish Labour leader Anas Sarwar expected to be given a peerage and a job in the revamped Department for Business, Innovation, Science and Trade.Mr Sarwar, who has been Scottish Labour leader since 2021, was among the first to call for Sir Keir to stand down in February.He hailed successor Mr Burnham for his 'bold Labour vision' as he entered No 10 this week. New Chancellor John Healey faces having to find the cash at the Budget , heaping more pressure on the public financesDowning Street confirmed appointments including Dan Jarvis, who stepped in as Sir Keir's defence secretary when John Healey resigned amid a funding row and has been returned to his previous post of security minister.James Murray, who was health secretary when Wes Streeting quit, has been made Financial Secretary to the Treasury and Paymaster General.Anna Turley is no longer Labour Party chair and has instead been made a Home Office minister.Florence Eshalomi has become a housing minister and Andy Slaughter Solicitor General, freeing up their roles as heads of parliament's housing and justice committees.There were also 17 re-appointments for ministers to remain in their roles, including Sarah Sackman as justice minister and Luke Pollard as defence minister.