United Kingdom Prime Minister Andy Burnham has unveiled a reduction in value added tax on household electricity bills as his first major policy initiative, while carrying out a wide ranging cabinet reshuffle following his assumption of office.
The government announced that the five per cent tax on consumer electricity bills will be removed from October, a move expected to save households about 45 pounds annually. The measure will initially be funded by cancelling plans to introduce digital identity cards.
Business Minister Jonathan Reynolds described the decision as an important first step by the new administration, saying it would provide immediate relief to families grappling with the rising cost of living.
After formally taking office following an audience with King Charles III at Buckingham Palace, Burnham pledged to re industrialise Britain, decentralise power, eliminate rough sleeping and implement a ten year national development plan.
He said his administration would pursue a new political approach aimed at restoring stability and rebuilding the country’s economy.
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The Prime Minister also carried out a major cabinet shakeup, replacing several allies of former Prime Minister Keir Starmer and appointing new ministers to key positions.
John Healey was appointed Finance Minister, Ed Miliband became Foreign Minister, Angela Rayner returned to government, Wes Streeting was named Defence Minister, while Shabana Mahmood retained her position as Interior Minister.
Burnham later held his first telephone conversation with United States President Donald Trump, during which both leaders discussed trade, defence cooperation and developments in the Strait of Hormuz. Trump described the talks as positive and expressed confidence in Burnham’s leadership.
French President Emmanuel Macron congratulated the new British leader and called for stronger cooperation between the United Kingdom and the European Union, while Ukrainian President Volodymyr Zelensky welcomed Burnham’s renewed commitment to supporting Ukraine.
Burnham assumes office at a time of mounting economic challenges, including high public debt, rising borrowing costs, volatile energy prices and increasing political pressure over immigration, as opposition parties continue to demand a fresh general election.
