Andy Burnham to cut taxes on electricity bills, announces new UK cabinet

Andy Burnham took office as the United Kingdom's seventh prime minister in a decade on Monday, pledging to restore political stability after years of leadership turmoil. On his first full day, he moved to deliver on campaign promises by announcing a reduction in household electricity costs through the removal of value-added tax on domestic bills, set to take effect from October 1.

To balance the fiscal impact of this tax cut, the government will discontinue a controversial digital identification programme that had been championed by Burnham's predecessor, Keir Starmer. The scrapped scheme carried an estimated cost of 1.8 billion pounds. The digital ID initiative, first introduced the previous September, had faced sustained public and political opposition since its announcement. Although initially framed as mandatory for employment verification purposes, the government had already shifted to a voluntary model in January following widespread criticism.

Burnham's cabinet reshuffle reflected a significant departure from Starmer's administration. He removed several key figures, including Rachel Reeves and David Lammy, while promoting allies who had previously departed the cabinet. John Healey, who had resigned as defence secretary in June over budgetary disagreements, returned as chancellor, signalling a potential shift toward increased defence spending. Ed Miliband, the former Labour leader, was appointed foreign secretary, a selection that proved contentious within party ranks.

In his initial engagement with international leaders, Burnham spoke with United States President Donald Trump on Monday. According to Trump's statement, the conversation covered North Sea oil, trade, military alliances, and regional security matters. Burnham reaffirmed Britain's commitment to supporting Ukraine and President Volodymyr Zelenskyy, stating his administration would maintain the same level of backing as his predecessor.