Andy Burnham Cuts VAT and Reshuffles Cabinet on First Day

Andy Burnham assumed office as the UK Prime Minister on the morning after replacing Keir Starmer. On his first day, he announced a cut in Value Added Tax (VAT) on consumer electricity bills from 5 percent, which will save consumers approximately £45 ($61) annually.

This measure will be funded by cancelling a plan for digital IDs. Burnham emphasized the need to provide “breathing space” to the public amid rising living costs.

He also pledged to re-industrialise Britain, decentralise power, and end homelessness. Following his meeting with King Charles III at Buckingham Palace, Burnham moved quickly to assert his authority by dismissing several of Starmer’s loyalists, including Rachel Reeves and David Lammy, while promoting allies like John Healey as finance minister and Ed Miliband as foreign minister.

In his initial communications with international leaders, Burnham reaffirmed commitments to defense and security, particularly regarding Ukraine, and received congratulations from French President Emmanuel Macron.