Andy Burnham has held his first cabinet meeting as UK prime minister, using his first full day in office to unveil an energy tax cut aimed at easing pressure on household finances while introducing a reshaped cabinet that signals a clear shift in Labour's direction.
The new prime minister announced that value-added tax (VAT) on domestic electricity bills will be abolished from 1 October, saving the average household around £45 (€52.73) a year. The measure is expected to cost the government about £850 million (€996m) in the current financial year, according to AFP.
"We're taking immediate action to cut taxes on energy bills, put more money in people's pockets and bring back hope," Burnham said.
The government said the tax cut would be funded by scrapping the previous administration's proposed digital ID scheme, which it said would have cost taxpayers £1.8 billion.
However Darren Jones, a former advisor to Keir Starmer, disputed that claim, arguing the ID programme had been "unfunded" and called on ministers to explain how they would cover the loss in tax revenue at the autumn budget.
