Relief for millions as new UK PM Burnham announces tax cut

By Tolulope Oke

Britain’s new Prime Minister, Andy Burnham, has announced the removal of value-added tax on household electricity bills, making cost-of-living relief his first major policy since taking office.

The five per cent VAT will be reduced to zero from October 1, saving an average household about £45 annually.

The government said the measure would initially be funded by cancelling the planned digital identification programme.

Burnham unveiled the tax cut ahead of his first cabinet meeting on Tuesday, barely a day after replacing Keir Starmer as prime minister.

He said the decision was intended to give struggling households “some breathing space” amid continuing pressure from energy and other living costs.

Burnham entered Downing Street on Monday after meeting King Charles III at Buckingham Palace and receiving the monarch’s approval to form a new government.

In his first address outside Number 10, the 56-year-old promised to introduce a new political and economic model for Britain through a 10-year national plan.

He pledged to re-industrialise the country, decentralise power from Westminster, expand public housing and place essential services under stronger public control.

The new prime minister also promised renewed efforts to end rough sleeping, an issue he previously tackled during his tenure as mayor of Greater Manchester.

Burnham moved quickly to establish control of the government by removing several prominent Starmer loyalists from the cabinet.

Former finance minister Rachel Reeves and former deputy prime minister David Lammy were among those dropped.

John Healey was appointed finance minister, while Ed Miliband became foreign minister. Angela Rayner returned to government, with Wes Streeting taking over as defence minister.

Shabana Mahmood retained her position as interior minister and is expected to continue overseeing reforms to Britain’s asylum system.

Burnham also held his first telephone conversation with United States President Donald Trump, during which they discussed trade, military cooperation and security.

He separately assured Ukrainian President Volodymyr Zelensky that Britain would maintain its support for Ukraine against Russia’s invasion.

French President Emmanuel Macron congratulated Burnham and called for renewed momentum in Britain’s relationship with the European Union.

Burnham becomes Britain’s seventh prime minister in just over a decade and the fourth to serve under King Charles III.