New Prime Minister Andy Burnham, the UK's seventh prime minister since 2016, has moved quickly to address the cost-of-living crisis. Less than a day after taking office, Burnham announced the removal of a 5% VAT tax on household electricity bills starting October 1.
The measure is intended to provide families struggling with the cost of living more breathing space and to reassure markets. The new prime minister stated that the tax cut will be funded by scrapping his predecessor's digital ID scheme.
Following the announcement, Burnham held his first cabinet meeting. He told ministers that he will set out his plans over the coming days and promised to reveal how the government will pay for any further reductions in tax.