Burnham tells cabinet to tackle living costs at first meeting
Summary
Prime Minister Andy Burnham held his first cabinet meeting and focused on lowering living costs. He announced a VAT cut on household energy bills starting in October, funded by canceling a planned digital ID project, though some debate exists over the plan’s financial details.Key Facts
- Andy Burnham chaired his first cabinet meeting as Prime Minister, prioritizing cost of living issues.
- He announced a VAT cut from 5% to zero on household electricity bills in England, Wales, and Scotland starting in October.
- The VAT cut is expected to save the average household about £45 per year.
- The VAT cut will not apply in Northern Ireland due to post-Brexit rules.
- Burnham plans to pay for the VAT cut by canceling the digital ID scheme, estimated to cost £850 million this year.
- Some critics say the digital ID scheme funding was not fully secured, raising concerns about budget management.
- Burnham aims for his government to clearly show how policies will be paid for and may ask ministers to reprioritize spending.
- The cabinet reshuffle removed some Starmer loyalists and promoted new ministers, including John Healey as chancellor.
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