Sacked Cabinet minister exposes 'unfunded' hole in Andy Burnham's first major policy as Labour infighting begins

Just twelve hours after losing his job amid the appointment of a new Cabinet, former chief secretary to the prime minister Darren Jones has said the digital ID project was unfunded, and questioned how the announced VAT cut would be paid for.

In a post on X he said: “Good news that VAT will be cut on electricity bills.

“It’s a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lower.

“But the digital ID program was unfunded. The government will have to set out how it will pay for its new policies at the budget.”

The revelation comes as new Prime Minister Andy Burnham announced a fresh tax cut to remove VAT from domestic electricity bills from October 1.

Newly appointed Chancellor John Healey initially said the cut would be funded from cancelling the controversial Digital ID programme.

Justifying the move to alleviate the cost of living, the Chancellor said the VAT cuts "will give families some breathing room on bills, and provide some reassurance this winter".

Shadow Defence Secretary James Cartlidge told Times Radio that the Office for Budget Responsibility also said last year that the digital ID card scheme has not been funded.

He said: “They literally said that, so you can’t fund a tax cut with savings from a programme that itself wasn’t funded.

“So you know, big question here, backed up by someone who was only recently in the heart of government under Labour - so it’s a fairly extraordinary position.

"I certainly agree with the new Prime Minister that cost of living is a big issue, I think we all agree with that, it’s still the number one thing that comes up on the doorstep with my constituents.

“But if you’re going to have policies to deal with it, they’ve got to last more than a few minutes in terms of scrutiny, to be honest.”

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John Swinney invites Andy Burnham to Scotland as Prime Minister vows UK wide devolution  

Scotland’s First Minister has invited Andy Burnham to visit north of the border “at the earliest opportunity” in a call between the pair this morning.

It comes as the newly appointed Prime Minister has vowed to devolve more decision making to all regions of England, Scotland, Wales and Northern Ireland, to put more power into every postcode.

John Swinney spoke to the new Prime Minister over the phone, congratulating him on his appointment and inviting Mr Burnham to his official residence at Bute House.

A spokesman for Mr Swinney said: "He set out his commitment to both governments working constructively together to address the cost-of-living crisis and to lower energy bills.

“The First Minister set out the majority within the Scottish Parliament for the future of Scotland to be decided by the people of Scotland and looked forward to a constructive dialogue on this issue.

“The First Minister also extended an invitation to host the Prime Minister at Bute House at the earliest opportunity.”

Newly appointed Business Secretary defends Andy Burnham's north-heavy Cabinet

Newly appointed Business Secretary Jonathan Reynolds has defended the make-up of Andy Burnham's new Cabinet - made up of members largely based in the north of England.

He told BBC Radio 4: “I don’t want to get touchy about it, but I can’t remember previous occasions where people have objected to too many people from a different part of the country being in there.

“I think there’s the same number of cabinet ministers from Greater Manchester there was at the start of this Labour government in 2024. The Prime Minister has changed, but the the rest of the Cabinet is broadly the same in terms of those names.

“So I don’t accept a bias for any part of the country. I do accept very much that this is a Prime Minister determined to make the economy work, the country work, for every single part of the UK.”

Shadow Defence Secretary says lack of funding allocation in Defence Investment Plan 'contributed to Keir Starmer's downfall'

Shadow Defence Secretary James Cartlidge has said the lack of spending on defence “in many ways contributed” to Sir Keir Starmer’s downfall as prime minister, and that funds should come from welfare cuts.

He told Times Radio: “Look what’s happened already with the VAT cut, the hardest thing in government is to fund stuff - is to find where you get the money from, because that involves paying in theory from somewhere else.

“In our view it has to be the welfare bill, and that’s not just because the quantity of money available, but cutting welfare is about resilience - it’s about strength in our economy, we think that’s where the savings should come from, primarily to fund defence.

“Everyone, without exception, I think, knows we need to spend more on defence - obviously that was a fundamental issue for the previous prime minister and in many ways contributed to his downfall and, as you say, the resignation of John Healey as defence secretary, who said defence spending had to go to 3 per cent.”

Ex-Starmer Cabinet minister says digital ID was 'unfunded' as he questions how energy bill cuts will be paid for

Just twelve hours after leaving the job, former chief secretary to the prime minister Darren Jones has said the digital ID project was unfunded, and questioned how the announced VAT cut would be paid for.

In a post on X he said: “Good news that VAT will be cut on electricity bills.

“It’s a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lower.

“But the digital ID program was unfunded. The government will have to set out how it will pay for its new policies at the budget.”

Shadow Chancellor demands new PM and Chancellor 'get borrowing under control'

Shadow Chancellor Mel Stride has demanded the new Prime Minister and Chancellor get public spending under control as the Office for National Statistics has today revealed debt "remains high by historical standards".

He said: “Labour have maxed out the nation’s credit card and sent borrowing soaring by an additional quarter of a trillion pounds across this parliament.

"If Andy Burnham and John Healey are really serious about the future of our economy then they must get borrowing under control.

"They can’t just fiddle the figures once again - they have to control spending, especially welfare, and tell us exactly where the money will come from for every new spending commitment.

"The Conservatives are the only party that have set out a coherent plan to cut welfare spending, cut borrowing and get Britain working again.”

'People are impatient for change' says Ed Davey as Lib Dems refuse to push for general election

Liberal Democrat leader Ed Davey has said his party is not pushing for a premature general election in the wake of Andy Burnham's unmandated appointment as Prime Minister.

He told GB News breakfast: "I don't think a general election is the answer to our current emergencies. Do we want a general election in due course, of course we do.

"I'm looking forward to the next election when it comes, we will put forward our ideas for our economy, for our defence, for our environment and our health service.

"But the Prime Minister has just got into No10, he needs to get on and fix the problems, and people are really impatient for change, and we will be holding them to account to make sure that change comes, and fast."

REVEALED: Andy Burnham's energy bills tax cut to cost £850MILLION

Andy Burnham's VAT cut to energy bills is set to cost £850million.

The move will take around £45 from the annual Ofgem price cap and cost around £850million in 2026-27, the Government says.

It is set to shave just 0.1 percentage points off CPI inflation, and 0.14 from RPI inflation.

The Ministry of Housing claims digital ID would have cost £1.8billion over the next three years - which is set to cover the nine-figure fee.

Labour's Karl Turner continues crusade against David Lammy despite ex-Deputy PM's exit 

Labour MP Karl Turner, who threatened to quit his post over David Lammy's jury trial reforms earlier this year, has been reacting to all Andy Burnham's Cabinet appointments this morning on social media.

In a parting swipe at Mr Lammy, Mr Turner said he was "very much looking forward to keeping the Government sensible on justice policy" under new minister Alex Norris.

"The former Justice Secretary made some shocking mistakes on the criminal justice system... We mustn’t do that again," he added.

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