Andy Burnham has announced a fresh tax cut to remove VAT from domestic electricity bills from 1 October, the first in what is expected to be a series of policy announcements on Tuesday morning.Chancellor John Healey said the cut would be funded from cancelling the Digital ID programme. “For too long, too many people have struggled with the cost of living,” he said. “Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.”Mr Burnham was still appointing his cabinet late into Monday night, with Angela Rayner returning to government as housing secretary, Healey named as chancellor and Wes Streeting appointed as defence secretary.Ed Miliband secured a place as foreign secretary and Shabana Mahmood is remaining as home secretary. Louise Haigh, who managed Mr Burnham’s Makerfield campaign, has been rewarded for her loyalty with a job at the heart of government as first secretary of state and chancellor of the Duchy of Lancaster. Chancellor Rachel Reeves, deputy prime minister David Lammy and housing secretary Steve Reed, all allies of Sir Keir Starmer, were sacked by the former mayor of Greater Manchester and have returned to the backbenches.Andy Burnham invites Donald Trump to Manchester for G20 hours after becoming prime ministerAndy Burnham is expected to meet with Donald Trump in Manchester next year for the G20 Summit, it has emerged, after the pair spoke for the first time just minutes after the new prime minister entered No 10.Mr Burnham reportedly extended the invite to the US president in one of his first calls since entering Downing Street.While White House sources offered no details of the phone call, new oil and gas drilling in the North Sea is understood to also have been discussed.Read more here:Rebecca Whittaker21 July 2026 07:30Cuts to VAT on electricity bills will be funded from scrapping Digital IDsChancellor John Healey said the cut to VAT on electricity would be funded from cancelling the Digital ID programme.“For too long, too many people have struggled with the cost of living,” he said.“Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.“This measure is funded this year from cancelling the Digital ID programme, and it will help bring down inflation while supporting households in every postcode.”New Chancellor John Healey leaves Downing Street on July 20 (Getty)Rebecca Whittaker21 July 2026 07:18Pictured: the members of Burnham's cabinet(PA)Bryony Gooch21 July 2026 07:00Burnham cuts VAT on electricity bills in first major policy announcementChancellor John Healey said the cut would be funded from cancelling the Digital ID programme.“For too long, too many people have struggled with the cost of living,” he said. “Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.”The new premier promised to provide early relief for households struggling with the cost of living as he stood on the steps of No 10 on Monday, pledging to set out the details today.More on that here:Adam Withnall21 July 2026 06:32Bryony Gooch21 July 2026 06:00Bryony Gooch21 July 2026 05:00Who are the key winners and losers of Andy Burnham’s reshuffle so far?Andrew Burnham - who took over as prime minister promising a “circuit breaker” for British politics - has started in post with a bang. The new PM conducted a brutal purge of Starmer loyalists, sacking more than nine ministers who had close ties with his predecessor. David Lammy, Darren Jones, Rachel Reeves and Peter Kyle all left the government, while others - including John Healey - had shock promotions.Here, The Independent looks at the key winners and losers of today’s brutal reshuffle so far.Read more here:Bryony Gooch21 July 2026 04:35Bryony Gooch21 July 2026 03:15What Burnham’s main policy pledges mean for youAndy Burnham has made his inaugural speech as prime minister, giving the nation more detail on his plans and vision for his time in office.The former Greater Manchester mayor ran uncontested for the position after securing the backing of 349 Labour MPs, making it impossible for anyone to stand against him.He became Labour leader on Friday, and met with King Charles today to form a government after Sir Keir Starmer formally resigned.Read more here:Bryony Gooch21 July 2026 02:20The full list of Cabinet positions:Rt Hon John Healey MP as chancellor of the exchequer Rt Hon Ed Miliband MP as foreign secretaryRt Hon Louise Haigh MP as first secretary of State, chancellor of the Duchy of Lancaster, and minister for the cabinet office Rt Hon Shabana Mahmood MP home secretaryRt Hon Yvette Cooper MP as health and social care secretartRt Hon Pat McFadden MP will work and pensions secretartyRt Hon Angela Rayner MP will return as secretary for communities, housing and local government (MHCLG)Rt Hon Jonathan Reynolds MP as secretary of state for business, inovation, science and trade Rt Hon Lucy Powell MP as education secretaryAnneliese Midgley MP as chief whipRt Hon Bridget Phillipson MP will remain minister for women and equalitiesRt Hon Lisa Nandy MP will remain secretary of state for digital, culture, media and sport (DCMS)Rt Hon Wes Streeting MP as defence secretaryAlex Norris MP as lord chancellor and secretary of state for justice Dame Angela Eagle DBE MP as secretary of state for environment, food and rural affairs Miatta Fahnbulleh MP as secretary of state for energy security and net zero Stephen Kinnock MP as secretary of state for Wales. Sir Chris Bryant MP as secretary of state for Northern Ireland. Rt Hon Ellie Reeves KC MP as attorney generalRt Hon Emma Reynolds MP as chief secretary to the treasury Kanishka Narayan MP as minister of state (minister for Artificial Intelligence) jointly in the cabinet office and DCMS.Hamish Falconer MP as minister for intergovernmental relations and European relations Rt Hon Heidi Alexander MP will remain as transport secretaryRt Hon Douglas Alexander MP will remain as secretary of state for Scotland. Rt Hon Sir Alan Campbell MP will remain as lord president of the Council and leader of the House of Commons. Rt Hon Baroness Smith of Basildon will remain as lord privy seal and leader of the House of Lords. Matthew Pennycook MP will remain as minister of state in the MHCLG.Bryony Gooch21 July 2026 01:10