Andy Burnham Reduces VAT on Households’ Electricity

by Ahmed Ibrahim World Editor

Andy Burnham’s ascension to UK prime minister followed weeks of political maneuvering after Keir Starmer’s abrupt resignation. The former mayor of Manchester, who had spent a decade steering Greater Manchester’s policies, took office with a mandate to tackle inflation, decentralize governance, and rebrand the Labour Party’s economic approach. His first 48 hours in 10 Downing Street were marked by decisive actions, including a VAT reduction on household electricity and the dismissal of senior Starmer allies, signaling a break from his predecessor’s policies.

A Fractured Economy and Immediate Policy Shifts

The new prime minister also announced a broader agenda to decentralize government, including the creation of Number 10 North in Manchester, where he will work at least one day a week. This “Manchesterism” model, blending public and private investment in infrastructure and housing, faced skepticism from analysts. Joshi Herrmann of The Mill, a Manchester news site that has tracked Burnham for years, said, But if the essay question is who can get economic growth and who can remodel the economy in the post-Brexit, post-financial crash era, I’d be very surprised if the answer to that question is Andy Burnham.

Key Appointments and Internal Struggles

Burnham’s cabinet reshuffle emphasized loyalty over experience, appointing Louise Haigh—former transport minister under Starmer—as his deputy and chief architect of policy. Haigh, who left Starmer’s government in 2024, now holds three posts: first secretary of state, chancellor of the Duchy of Lancaster, and minister for the cabinet office. Her role in executing Burnham’s vision, including a proposed 10-year reform plan, has drawn both support and scrutiny. Meanwhile, John Healey, a former defense minister, was named chancellor of the Exchequer—a surprise choice that underscored Burnham’s focus on fiscal credibility.

Britain's new Prime Minister Andy Burnham and his wife Marie-France van Heel wave as they arrive at 10 Downing Street in
Photo: apnews.com

International Relations and the Trump Factor

Burnham’s foreign policy priorities include maintaining NATO commitments, supporting Ukraine, and navigating relations with U.S. President Donald Trump. His first call with Trump, described as interesting and went very well, included assurances on shipping in the Strait of Hormuz and defense cooperation. Trump, who had previously criticized Starmer, praised Burnham’s “good work” and expressed optimism about their partnership. 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! Trump tweeted.

Royaume-Uni : les premiers choix du nouveau Premier ministre Andy Burnham pour se démarquer de l
Photo: lesechos.fr

However, Burnham’s past criticism of Trump and his stance on issues like North Sea drilling complicate the relationship. While Trump celebrated reports that Burnham might support oil exploration, sources close to the prime minister downplayed the extent of the commitment. The tension between Burnham’s progressive agenda and Trump’s deregulatory approach remains a key uncertainty.

Political Backlash and the Road Ahead

The Labour Party’s left wing has already pushed back against Burnham’s leadership. Green Party leader Zack Polanski accused Starmer of “disastrous” choices in the chancellorship race, backing Ed Miliband over Wes Streeting. While Burnham’s focus on decentralization and economic reform has broad appeal, his ability to unify the party—and deliver on promises—remains unproven. The upcoming autumn budget, the fate of the digital ID program, and the long-term viability of “Manchesterism” will define his tenure.

Andy Burnham CUTS VAT on ELECTRICITY BILLS for households from October in first act as PM

As Burnham settles into his role, the central question looms: Can a mayor-turned-prime minister transform a fractured political landscape without alienating the very base that elected him? The answer may hinge on whether his vision for a business-friendly socialism can bridge the gap between austerity and ambition—or if the pressures of governance will force him to abandon his most ambitious goals.

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