During his first cabinet session as Prime Minister, Andy Burnham pledged to lead an administration focused on addressing the rising cost of living. He instructed his newly appointed ministers to prioritize financial relief for households, promising that his government would demonstrate that assistance is on the horizon.
This initiative follows his recent announcement to eliminate VAT on domestic electricity bills starting in October. To finance this change, the government intends to redirect £850m from funds previously allocated by the former Conservative administration for a proposed digital ID program. However, this strategy has sparked immediate political debate, with critics like former minister Darren Jones labeling the ID project funding as nonexistent, and shadow chancellor Sir Mel Stride accusing the government of fiscal recklessness.
Burnham emphasized that his cabinet must maintain strict financial discipline, requiring departments to reprioritize existing budgets to fund new policy commitments. He also highlighted plans for a new administrative base in Manchester, dubbed No 10 North, which will handle devolution and economic growth strategies. The Prime Minister intends to work from this northern office at least one day per week, with incentives offered to London-based civil servants who relocate.
The cabinet meeting, which saw Burnham receive applause from his team, marked the beginning of a broader reshuffle following the appointment of key figures like Chancellor John Healey and Foreign Secretary Ed Miliband. Further measures to mitigate household expenses are expected to be unveiled in the near future.
