Burnham promises 'cost-of-living government' in first cabinet meeting

Burnham promises 'cost-of-living government' in first cabinet meeting

Andy Burnham has pledged to lead a 'cost-of-living government', making financial support for households his first priority after taking office. At his first cabinet meeting, Burnham announced a temporary six-month cut in VAT on household electricity bills, reducing the rate from 5% to 0% from October. The measure is expected to save households around £45 over the winter and forms part of a wider programme aimed at easing pressure on family finances. New chancellor John Healey acknowledged the tax cut would not solve the cost-of-living crisis but said it would provide welcome relief for millions of homes. Critics questioned how the £850 million policy would be funded after the government cancelled plans for a national digital ID programme, while others argued the savings would be partly offset by rising energy prices. Burnham has indicated that further measures are being considered, including support for transport, housing, and energy costs, as his new administration seeks to rebuild confidence and stimulate economic growth during a challenging financial period. See