Andy Burnham cuts taxes on energy bills in first move as PM - funded by scrapping hated digital ID

Andy Burnham has announced a fresh tax cut to remove VAT from domestic electricity bills from October 1.

Chancellor John Healey said the cut would be funded from cancelling the Digital ID programme.

“For too long, too many people have struggled with the cost of living,” he said.

“Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.

“This measure is funded this year from cancelling the Digital ID programme, and it will help bring down inflation while supporting households in every postcode.”

Claire Coutinho, the Shadow Energy Secretary, accused the Prime Minister of "nicking our plans to cut VAT" with the move.

"Our Cheap Power Plan saves households £200 on bills, and businesses 20 per cent off of electricity - at no cost to the taxpayer.

"If Andy’s nicked our plan to cut VAT? Good. But households bills are up by £300 since 2024 - so more to do. And we’re the only ones with a plan for business."

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Tories launch unusual bid to force Andy Burnham to face proper scrutiny as Labour set to go MONTHS without fielding questions

The Conservatives have tabled a motion in the Lords to force Andy Burnham's Government to reveal its plans.

The Tories have accused Mr Burnham and the Government of being "desperate" to avoid scrutiny after cancelling the Conservatives' Opposition Day last week.

With the Commons now in summer recess, the Prime Minister will not make a statement to Parliament until September, at the earliest.

A rare procedural motion has now been tabled by the Tories in the still-sitting House of Lords to summon a minister to face a proper debate.

Lord True, the Leader of the Opposition in the Lords, said: "Andy Burnham is running scared of Parliamentary scrutiny because he hasn’t done the hard work to craft a coherent plan for Government.

"He and his party have gone to extraordinary lengths to avoid having to answer basic questions from MPs by letting the House of Commons go home for the recess and leaving the public in the dark.

"That is why we are asking ministers to answer questions in the House of Lords which is still sitting and come clean about their intentions for the country.

"We will consider any reasonable proposal from Government that allows parliamentary scrutiny of the new Prime Minister's briefing and declarations about his policies."

Just as Andy Burnham promises Britons a tax cut... JPMorgan opens door to scrapping £3billion investment in Britain in major tax warning

JPMorgan's CEO refused to rule out scrapping the bank's proposed £3billion skyscraper in London last night in a major tax warning to Andy Burnham.

Jamie Dimon said he hoped London would remain JPMorgan's European headquarters for a "long period of time" and said he was "praying that [Burnham's Government] gets policy right".

"I would be very cautious if I was a Government thinking that penalising any company out of the ordinary is a good thing for that country," Mr Dimon said.

"And what they should have in my view is a competitive tax system that's consistent and conducive to capital formation that'll drive a country, drive the growth of a country.

"That is what they should do. If you have an uncompetitive tax system, capital leaves your country."

He also warned that "Government after Government" in Britain "get [policy] wrong".

READ THE FULL STORY ON JPMORGAN'S WARNING HERE

'Huge questions' over how Andy Burnham will fund energy tax cuts - as Tories warn: 'Labour have NO plan'

Shadow Scottish Secretary Andrew Bowie has warned that "huge questions" now linger over how Andy Burnham will fund his newly-announced energy tax cuts.

"Whilst any move to reduce bills is welcome, huge questions over the how this is paid for in the long run," he has just said.

"We have set out in the Conservative Cheap Power Plan how we would reduce bills.

"Labour have no plan. Questions that need to be asked, but can’t be for six weeks."

CONFIRMED: Andy Burnham removes VAT from energy bills from October 1 - funded by scrapping hated Digital ID

Andy Burnham has announced a fresh tax cut to remove VAT from domestic electricity bills from October 1.

Chancellor John Healey said the cut would be funded from cancelling the Digital ID programme.

“For too long, too many people have struggled with the cost of living,” he said.

“Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.

“This measure is funded this year from cancelling the Digital ID programme, and it will help bring down inflation while supporting households in every postcode.”

Andy Burnham to roll out 'fully-funded' energy bill cuts - but admits it 'won't solve everything' 

Andy Burnham is expected to announce a "fully-funded" cut to energy bills in his first major intervention as Prime Minister.

Downing Street is pushing to "give people some breathing space now", with Mr Burnham said to be planning to scrap the five per cent VAT on energy levies, a move which would save households £86 a year, and removing green levies, saving £42 a year.

Some of the measures and how they would be funded will be announced today, with energy prices expected to jump in costs because of the ongoing Iran war.

The Prime Minister is also considering reinstating the £2 cap on bus fares and introducing rent freezes as a long-term measure, according to The Times.

But the new Prime Minister has admitted it "won't solve everything".

When pressed on his plans, Mr Burnham said: "We're looking at measures that could make a difference this year. So we are looking at all of those things, but we'll make more announcements tomorrow."

He added: "We just want to do some things that people will feel and feel quite quickly. It won't solve everything. It won't take all of the pressure off, but it just shows a direction of travel and that we’re serious about helping them out."

Nigel Farage demands General Election now after Andy Burnham unleashes 'coup' to seize power

Nigel Farage has demanded an immediate General Election, accusing Andy Burnham of launching a "coup" to seize No10.

The Reform UK leader said Mr Burnham had "effectively crowbarred" his way into Downing Street after he stood unopposed for Labour leader.

"He has arrived there unelected, unopposed and with no mandate from the public whatsoever but for a by-election victory in Makerfield," Mr Farage wrote in the Mail.

Describing it as a "very disturbing state of affairs indeed", he warned Mr Burnham's Government would be "more of the same as the previous Government - but hiked even further to the Left".

Mr Farage also pointed out that the Makerfield MP's "short, rather dull" speech failed to discuss immigration - and said the "floodgates will be opened even wider" under Mr Burnham's premiership.

He also said watering down Shabana Mahmood's migration overhaul would be a "total abdication of duty", adding that if Mr Burnham was "hellbent" on implementing his "radical changes", he needs a mandate.

"That means calling a General Election. Right this very minute," he said.

Got a big job ahead of him!' Donald Trump issues first verdict on Andy Burnham after phoning new PM

Donald Trump gave his verdict on Andy Burnham late last night after a phone call between the two leaders.

"The Prime Minister has got a big job ahead of him, but he will be able to do it and, of course, the USA will be there to help," the President said in his first public comments following the call.

He added: "We discussed North Sea oil, trade, the military alliance, demining of the Hormuz Strait, and many other topics."

Ed Miliband, who opposed new drilling in the North Sea while Energy Secretary, may soon come face-to-face with the President as Foreign Secretary.

A senior official within Mr Trump's administration said the White House was scathing at the "inauspicious" appointment of Mr Miliband to the diplomatic role.

The source told The Sun the administration "aren't surprised... They're just relieved he's not Chancellor".

READ THE FULL STORY HERE

RECAP - Andy Burnham's Cabinet in full: Ed Miliband, Angela Rayner and more learn fates in new-look No10

Andy Burnham finally revealed his Cabinet last night as he launched into a purge of some of Sir Keir Starmer's closest allies.

Rachel Reeves, David Lammy, Steve Reed and Lord Hermer were all shown the exit door - though Shabana Mahmood, Heidi Alexander, Lisa Nandy and Pat McFadden all clung on.

Also returning to Cabinet but under new portfolios are Ed Miliband, now Foreign Secretary - and Yvette Cooper, now Health Secretary.

In a shock pick, former Defence Secretary John Healey was named Chancellor, with the ex-Health Secretary Wes Streeting filling his former boots as Defence Secretary.

Angela Rayner also returned from Government exile as Housing Secretary after she was cleared of any deliberate wrongdoing in relation to her tax affairs.

Mr Burnham's inner circle have all been handed bumper new jobs.

Louise Haigh has been appointed as Chancellor of the Duchy of Lancaster, Miatta Fahnbulleh as Energy Secretary, and Anneliese Midgley as Chief Whip.

READ THE FULL LIST OF CABINET MEMBERS HERE