Andy Burnham has put the cost of living at the center of his first days as prime minister, telling his new cabinet that help with household expenses will be a main focus of government. At the opening of his first cabinet meeting, he said people should get a clearer sense that relief is on the way.
The push follows his announcement of a VAT cut on household electricity bills, due to start in October. The measure would reduce VAT from five percent to zero in England, Wales and Scotland, and the government says it would save the typical household about £45 a year. It will not apply in Northern Ireland because of post-Brexit rules, though ministers there are being offered extra Treasury money for cost of living measures.
The cost of living plan quickly drew scrutiny over how it will be paid for. Downing Street said the estimated £850m cost of the VAT cut for the rest of the financial year could come from £1.8bn that had been set aside by the previous government for a digital ID rollout. But Darren Jones, who was among the Starmer loyalists removed from cabinet on Monday, said the digital ID programme was unfunded and Burnham would need to explain where the money would come from. Opposition parties also attacked the plan, with Conservative shadow chancellor Sir Mel Stride accusing Labour of being reckless with public finances.
