Andy Burnham is gathering his Cabinet today as a Labour MP boasted of the 'march of the Northern Queens'.The PM will parade his new team for the cameras after unveiling a sweetener of 5 per cent off electricity bills from October - insisting it can give families 'breathing room'.The Government claims the £850million to pay for the measure is being found by axing the ID cards scheme. However, Darren Jones - who was brutally sacked from the Cabinet by phone in Mr Burnham's purge of Starmer loyalists yesterday - warned this morning that no funding had been earmarked for that policy. As a result new Chancellor John Healey faces having to find the cash at the Budget, heaping more pressure on the public finances. Mr Jones posted on X: 'Good news that VAT will be cut on electricity bills. It's a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lower. 'But the Digital ID program was unfunded. The government will have to set out how it will pay for its new policies at the Budget.' Experts also said the estimated £45 benefit of the proposal for households will be swamped by surging energy prices, with the Iran war threatening to escalate once again. Currently Ofgem's cap is projected to rise by around £50 in October. Ironically Mr Burnham - who until this summer advocated rejoining the EU - can only tweak VAT on energy because Britain is no longer in the bloc. The cut cannot be applied in Northern Ireland, which is subject to the rates dictated by Brussels.Rachel Reeves previously rejected the idea on the basis that those who live in bigger properties with higher consumption benefit most.The manoeuvring comes as Mr Burnham continues making appointments to key posts in the Government, having completed the Cabinet posts late last night.Backbencher Oliver Ryan enthused about 'stellar appointments', highlighting Louise Haigh as de facto deputy PM and comebacks for Angela Rayner and Lucy Powell, as well as roles for Anneliese Midgley, Lisa Nandy and Bridget Phillipson. 'Personally I'm completely here for the march of the northern queens; Lou, Anneliese, Ange, Lucy, joining Lisa & Bridget - what a SQUAD,' he posted. Questions are mounting over how Mr Burnham will pay for expensive pledges in a lurch to the Left. They include a commitment to the biggest council house building programme in history, to be overseen by Angela Rayner, as well as a national social care service.Yesterday Mr Burnham announced an extra £340million to 'end' rough sleeping over the next three years, without spelling out where the money would come from. And he is expected to trumpet a £2 cap on bus fares and 20 per cent cut in business rates for the hospitality sector within days. Markets have been jittery at the prospect of Labour overseeing yet more borrowing, with Britain's debt mountain already at eye-watering levels.Concerns were assuaged somewhat yesterday when Mr Burnham opted against installing Ed Miliband - whose views are regarded as 'Soviet' by many - in No11. But the Tories said the new administration was 'falling apart on day one'. In other twists and turns on Mr Burnham's first full day in power:The PM is gathering his Cabinet, having sacked 11 Starmerite ministers and drafted in a swathe of his Northern allies;Purged Cabinet ministers are in line for £220,000 in payoffs after the extraordinary cull; Data show the jobs market stalling with private sector wages falling behind inflation - although public sector pay has kept surging; Official figures for June have underlined the soaring tax burden on Brits. The household electricity VAT tax cut is the first major economic policy announced by new Prime Minister Andy Burnham, who said the measure would 'give people breathing space' New Chancellor John Healey said: '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.' Darren Jones - who was sacked from the Cabinet in Mr Burnham's purge of Starmer loyalists yesterday - warned this morning that no funding had been earmarked for that policy
Labour alarm at Burnham's 'unfunded' 5% VAT off energy bills
Andy Burnham has unveiled a sweetener of 5 per cent off electricity bills from this October, insisting it can give families 'breathing room'.











