Andy Burnham urged his new cabinet to prioritize tackling the cost of living crisis during his first meeting, announcing plans to make electricity bills VAT-free starting October 1, which could save households £45 annually.
Andy Burnham convened his first cabinet meeting, prioritizing the cost of living crisis and unveiling measures to ease financial pressure on households. The plan includes scrapping VAT on electricity bills from October 1, a policy expected to save families around £45 per year.
Cabinet Reshuffle and Policy Priorities
Burnham’s first cabinet meeting included significant personnel changes, with figures like Dan Jarvis and James Murray taking key roles. The reshuffle also saw the departure of Rachel Reeves and David Lammy, while Ed Miliband was promoted to foreign secretary. Miatta Fahnbulleh, appointed as energy secretary, denied claims of a purge, stating, no one has a right
to be in the cabinet, which contained a diversity of views.
Chancellor John Healey emphasized fiscal discipline during a Treasury address, pledging to adhere to his predecessor’s tax and spending rules. However, he also signaled a focus on fullest possible use of public investment,
hinting at potential expansions within budgetary constraints.
VAT-Free Electricity: A Direct Response to Inflation
The decision to remove VAT from electricity bills aligns with Burnham’s promise to alleviate living costs. The policy, effective from October 1, was a tangible step to reduce household expenses.
Internal Tensions and Strategic Realignments
While figures like Louise Haigh were given prominent roles in the Cabinet Office, others, including David Lammy, were sidelined.
Notably, Scottish Labour leader Anas Sarwar is set to be given a seat in the House of Lords so he can join Burnham’s government. Sarwar, who rocked Sir Keir’s premiership when he called for him to resign in February, will become a business minister.
Quotes and Reactions
Fahnbulleh, the energy secretary, defended the reshuffle, stating, no one has a right
to be in the cabinet, which contained a diversity of views.
