Andy Burnham to cut taxes on electricity bills, announces new UK cabinet

What the report says

Al Jazeera reported that Andy Burnham used his first full day as United Kingdom prime minister to announce a planned cut to household electricity bills, presenting it as an early response to the cost-of-living crisis. According to Downing Street, his Labour government intends to remove value-added tax from domestic electricity bills from October 1. The government says the revenue gap will be offset by cancelling the digital ID programme advanced under former Prime Minister Keir Starmer, which Al Jazeera said was estimated to cost 1.8 billion pounds, or $2.4bn.

Burnham, the former mayor of Greater Manchester, replaced Starmer on Monday and is due to hold his first cabinet meeting on Tuesday. He has pledged to end years of political instability and has framed his leadership around a new political and economic approach. Al Jazeera said he dismissed several Starmer allies, including Rachel Reeves and David Lammy, while bringing back figures who had left the previous government.

Among the most significant appointments, John Healey was named chancellor after resigning as defence secretary in June over defence-spending disagreements. The move may signal pressure for more military funding at a time when US President Donald Trump has criticised NATO members over contributions. Burnham also spoke with Trump, who said they discussed energy, trade, military issues and demining in the Strait of Hormuz.

Ed Miliband’s appointment as foreign secretary drew attention because of his record on net zero, North Sea oil and past foreign-policy controversies. Burnham also said UK backing for Ukraine and President Volodymyr Zelenskyy would remain firm.