Burnham opens premiership with cabinet push on living costs

Andy Burnham used his first cabinet meeting as prime minister on Tuesday to press ministers to act on the cost of living, following his announcement of a tax cut on household electricity. He said the government would need to reorder its priorities as it sets out its first measures.

The policy unveiled on his first full day in office removes value-added tax from domestic power bills, a move Burnham said would give families some immediate relief. He has described the approach as part of a wider effort to make the government more focused on everyday expenses.

The plan has already drawn scrutiny over how it will be paid for. Critics have questioned whether savings from scrapping other schemes, including the digital ID programme introduced under Keir Starmer, would be enough to cover the cost.

Burnham has also signalled that fiscal restraint will remain part of his message even as he promises new spending priorities. His government is expected to face further tests in the months ahead, including an autumn summit with the European Union.