{"id":703004,"date":"2026-07-21T07:57:12","date_gmt":"2026-07-21T07:57:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/703004\/"},"modified":"2026-07-21T07:57:12","modified_gmt":"2026-07-21T07:57:12","slug":"andy-burnham-latest-new-pm-cuts-vat-on-electricity-bills-in-first-major-policy-announcement","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/703004\/","title":{"rendered":"Andy Burnham latest: New PM cuts VAT on electricity bills in first major policy announcement"},"content":{"rendered":"<p>Angela Rayner returns in cabinet reshuffle as Andy Burnham becomes prime ministerYour support helps us to tell the story<\/p>\n<p class=\"sc-1uza6dc-0 iOIawn\">From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it&#8217;s investigating the financials of Elon Musk&#8217;s pro-Trump PAC or producing our latest documentary, &#8216;The A Word&#8217;, which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.<\/p>\n<p class=\"sc-1uza6dc-0 iOIawn\">At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.<\/p>\n<p class=\"sc-1uza6dc-0 iOIawn\">The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.<\/p>\n<p>Your support makes all the difference.Read more<\/p>\n<p>Andy Burnham has announced a fresh tax cut to remove VAT from domestic electricity bills from 1 October, the first in what is expected to be a series of policy announcements on Tuesday morning.<\/p>\n<p>Chancellor John Healey said the cut would be funded from cancelling the Digital ID programme. \u201cFor too long, too many people have struggled with the cost of living,\u201d he said. \u201cToday\u2019s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.\u201d<\/p>\n<p>Mr Burnham was <a href=\"https:\/\/www.independent.co.uk\/news\/uk\/politics\/andy-burnham-new-cabinet-appointments-in-full-chancellor-b3018079.html\" rel=\"nofollow noopener\" target=\"_blank\">still appointing his cabinet late into Monday night<\/a>, with Angela Rayner returning to government as housing secretary, Healey named as chancellor and Wes Streeting appointed as defence secretary.<\/p>\n<p>Ed Miliband secured a place as foreign secretary and Shabana Mahmood is remaining as home secretary. <\/p>\n<p>Louise Haigh, who managed Mr Burnham\u2019s Makerfield campaign, has been rewarded for her loyalty with a job at the heart of government as first secretary of state and chancellor of the Duchy of Lancaster. <\/p>\n<p>Chancellor Rachel Reeves, deputy <a href=\"https:\/\/www.independent.co.uk\/topic\/prime-minister\" rel=\"nofollow noopener\" target=\"_blank\">prime minister<\/a> David Lammy and housing secretary Steve Reed, all allies of Sir <a href=\"https:\/\/www.independent.co.uk\/topic\/keir-starmer\" rel=\"nofollow noopener\" target=\"_blank\">Keir Starmer<\/a>, were sacked by the former mayor of Greater Manchester and have returned to the backbenches.<\/p>\n<p><a href=\"#post-2397985\" class=\"sc-1wyow5i-1 earWyi\"><\/a>VAT cut &#8216;good&#8217; first step but people &#8216;won&#8217;t feel much benefit&#8217;, Martin Lewis says<\/p>\n<p>Money saving expert Martin Lewis has said the government\u2019s announcement it will cut VAT from electricity bills is a \u201cgood\u201d first step but that \u201cin practice people won&#8217;t feel much benefit\u201d.<\/p>\n<p>In a post on X, he said the energy price cap rise on 1 October is likely to mean any savings made are quickly eaten up.<\/p>\n<p>\u201cUltimately though it does mean people will pay less than they would&#8217;ve done without this,\u201d he wrote. \u201cYet it is going to need a lot more policy cost reductions, likely at the budget, for things to feel materially cheaper.\u201d<\/p>\n<p>Nicole Wootton-Cane21 July 2026 08:50<\/p>\n<p><a href=\"#post-2397983\" class=\"sc-1wyow5i-1 earWyi\"><\/a>Shadow defence secretary says new policies have &#8216;got to last more than a few minutes&#8217; of scrutiny<\/p>\n<p>Shadow defence secretary James Cartlidge has said new policies have \u201cgot to last more than a few minutes\u201d of scrutiny, during a discussion on the Prime Minister\u2019s announcement that new VAT cuts will be partly funded by scrapping Sir Keir Starmer\u2019s digital ID project.<\/p>\n<p>Mr Cartlidge\u2019s comments came after former chief secretary to the prime minister Darren Jones posted on X that it is \u201cgood news that VAT will be cut on electricity bills\u201d but \u201cthe DigitalID program was unfunded\u201d.<\/p>\n<p>The shadow defence secretary told Times Radio that the OBR (Office for Budget Responsibility) also said last year that the digital ID card scheme has not been funded.<\/p>\n<p>He said: \u201cThey (the OBR) literally said that, so you can\u2019t fund a tax cut with\u2026 with savings from a programme that itself wasn\u2019t funded.<\/p>\n<p>\u201cSo you know, big question here, backed up by someone who \u2013 as you can rightly say \u2013 was only recently was in the heart of government under Labour \u2013 so it\u2019s a fairly extraordinary position\u2026 I certainly agree with the new prime minister that cost of living is a big issue, I think we all agree with that, it\u2019s still the number one thing that comes up on the doorstep with my constituents.<\/p>\n<p>\u201cBut if you\u2019re going to have policies to deal with it, they\u2019ve got to last more than a few minutes in terms of scrutiny, to be honest.\u201d<\/p>\n<p>Nicole Wootton-Cane21 July 2026 08:40<\/p>\n<p><a href=\"#post-2397981\" class=\"sc-1wyow5i-1 earWyi\"><\/a>Sacked Cabinet minister disputes funding claims for Burnham\u2019s first major policy<\/p>\n<p>The Independent\u2019s political reporter Athena Stavrou reports:<\/p>\n<p>A Starmer loyalist who was sacked from a senior Cabinet role by Andy Burnham has disputed the new prime minister\u2019s funding claims underpinning his first major policy.<\/p>\n<p>The Burnham government have said a fresh tax cut to remove VAT from domestic electricity bills would be funded from cancelling the Digital ID programme.<\/p>\n<p>But shortly after the policy was announced, former Chief Secretary to the prime minister Darren Jones publicly claimed the policy was not funded.<\/p>\n<p>He wrote on X: \u201cGood news that VAT will be cut on electricity bills. It\u2019s a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lower.<\/p>\n<p>\u201cBut the DigitalID program was unfunded. The government will have to set out how it will pay for its new policies at the budget.\u201d<\/p>\n<p>He now becomes the first Labour backbencher to publicly criticise the Burnham government, something the former mayor may have to get used to.<\/p>\n<p>Nicole Wootton-Cane21 July 2026 08:30<\/p>\n<p><a href=\"#post-2397980\" class=\"sc-1wyow5i-1 earWyi\"><\/a>US politics are \u2018robust\u2019 and Miliband\u2019s appointment won\u2019t be an issue, minister says<\/p>\n<p>The Independent\u2019s political reporter Athena Stavrou reports:<\/p>\n<p>A government minister has insisted Ed Miliband\u2019s appointment as foreign secretary won\u2019t negatively impact Britain\u2019s relationship with the US, despite having vocally criticised Donald Trump in the past.<\/p>\n<p>Mr Miliband, who will have to work closely with the US administration, previously called the US president a \u201cracist, misogynistic, self-confessed groper\u201d.<\/p>\n<p>But asked if this could be an issue in his new role, business secretary Jonathan Reynolds told Sky News: \u201cNo, I think as ever that this government will work with allies across the world.<\/p>\n<p>\u201cI know from my experience last time on some of the trade deal negotiations, it can be a robust exchange with our US friends and allies. But they will stand up for what they believe their national interest is, and they will do the same.\u201d<\/p>\n<p>He added: \u201cWell, sometimes I reflect on things that members of the US administration have themselves said about different people in US politics. So they are quite a robust bunch over there in the US and I know they&#8217;ll have their priorities. We&#8217;ve got ours.<\/p>\n<p>\u201cCan we work together on lots of things in mutual interest in both countries? Absolutely, we can.\u201d<\/p>\n<p>Nicole Wootton-Cane21 July 2026 08:25<\/p>\n<p><a href=\"#post-2397979\" class=\"sc-1wyow5i-1 earWyi\"><\/a>Cabinet minister hails \u2018tremendous\u2019 VAT cut on energy bills<\/p>\n<p>The Independent\u2019s political reporter Athena Stavrou reports:<\/p>\n<p>One of Andy Burnham\u2019s newly appointed government minister\u2019s has hailed his decision to cut Vat on energy bills as \u201ca tremendous announcement for the first day of the new cabinet\u201d.<\/p>\n<p>Business secretary Jonathan Reynolds said the policy is a \u201cclear statement of intent\u201d from the Burnham government on how it will deal with the cost of living crisis.<\/p>\n<p>\u201cIt\u2019s about the government&#8217;s priorities,\u201d he told Sky News. \u201cIt&#8217;s about showing we understand people need some breathing space for pressure that they are under, and being able to make an announcement like this, I think, is a real statement.\u201d<\/p>\n<p>Nicole Wootton-Cane21 July 2026 08:20<\/p>\n<p><a href=\"#post-2397978\" class=\"sc-1wyow5i-1 earWyi\"><\/a>Burnham\u2019s new business secretary \u2018glad to be back\u2019<\/p>\n<p>The Independent\u2019s political reporter Athena Stavrou reports:<\/p>\n<p>Andy Burnham\u2019s newly appointed business secretary Jonathan Reynolds is the first minister to be up on the morning broadcast round.<\/p>\n<p>Mr Reynolds, who first served as Starmer\u2019s business secretary before being moved to the role as chief whip, said he was \u201cvery glad to be back\u201d in the role.<\/p>\n<p>Asked if he did not enjoy the role of chief whip, he said: \u201cIt&#8217;s an important job. It&#8217;s a privilege to serve in any capacity.\u201c<\/p>\n<p>But look, I think for the kind of things that I think make the biggest difference to the country &#8211; I still get stopped in the street by people who work for British Steel, or what we did with Harland and Wolff, or the trade deal.<\/p>\n<p>\u201cSo I think the chance to serve in that it&#8217;s a privilege in any capacity. But this is what I love doing.\u201d<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/07\/01KY0NHQ4V9CQ8R4BY2QAXFR03.jpg\"  loading=\"lazy\" alt=\"Newly appointed Business Secretary Jonathan Reynolds leaving number 10 Downing Street\" class=\"sc-1mc30lb-0 ggpMaE\"\/>Newly appointed Business Secretary Jonathan Reynolds leaving number 10 Downing Street (PA)<\/p>\n<p>Nicole Wootton-Cane21 July 2026 08:14<\/p>\n<p><a href=\"#post-2397975\" class=\"sc-1wyow5i-1 earWyi\"><\/a>Questions raised over how cutting the digital ID project funds VAT cut<\/p>\n<p>Former chief secretary to the prime minister Darren Jones said the digital ID project was unfunded and questioned how the VAT cut would be paid for.<\/p>\n<p>In a post on X he said: \u201cGood news that VAT will be cut on electricity bills.<\/p>\n<p>\u201cIt\u2019s a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lower.<\/p>\n<p>\u201cBut the DigitalID program was unfunded. The government will have to set out how it will pay for its new policies at the budget.\u201d<\/p>\n<p>Rebecca Whittaker21 July 2026 08:02<\/p>\n<p><a href=\"#post-2397974\" class=\"sc-1wyow5i-1 earWyi\"><\/a>Government determined to &#8216;creating real opportunities for young people&#8217;<\/p>\n<p>The government aims to reform education to help young people get into work. <\/p>\n<p>\u201cThe reality is too many young people are still locked out of work,\u201d a Government spokesperson said.<\/p>\n<p>\u201cFor too long, governments have paid for failure rather than invested in people\u2019s success.<\/p>\n<p>\u201cWe\u2019re determined to turn that around by creating real opportunities for young people, reforming education so everyone has a clear path to a good job and providing the support people need to stay and get on in work.\u201d<\/p>\n<p>Rebecca Whittaker21 July 2026 07:51<\/p>\n<p><a href=\"#post-2397964\" class=\"sc-1wyow5i-1 earWyi\"><\/a>Watch: Angela Rayner returns in cabinet reshuffle as Andy Burnham becomes prime minister Angela Rayner returns in cabinet reshuffle as Andy Burnham becomes prime minister<\/p>\n<p>Rebecca Whittaker21 July 2026 07:45<\/p>\n<p><a href=\"#post-2397973\" class=\"sc-1wyow5i-1 earWyi\"><\/a>The &#8216;economy is stuck in the slow lane&#8217; warns MP<\/p>\n<p>Responding to unemployment and borrowing statistics published by the ONS today, which show unemployment has risen and public borrowing at \u00a316bn, Liberal Democrat Treasury Spokesperson Daisy Cooper MP said: &#8220;The new Chancellor needs to turn things around, and fast. The economy is stuck in the slow lane while job seekers and families pay the price.<\/p>\n<p>&#8220;Healey now needs to urgently tackle unemployment, by scrapping Rachel Reeves&#8217; unfair jobs tax that is stifling businesses and slamming the door shut on job opportunities.<\/p>\n<p>&#8220;Today&#8217;s borrowing figures also show the huge pressure on our public finances. The only real answer is to boost growth, and protect our economy from the global shocks it faces, like Trump&#8217;s illegal Iran war. That&#8217;s why Andy Burnham must immediately begin negotiations for a new growth defence partnership with the EU, including joining the Single Market.&#8221;<\/p>\n<p>Rebecca Whittaker21 July 2026 07:37<\/p>\n","protected":false},"excerpt":{"rendered":"Angela Rayner returns in cabinet reshuffle as Andy Burnham becomes prime ministerYour support helps us to tell the&hellip;\n","protected":false},"author":2,"featured_media":703005,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[233331,49,50,51,47,52,48],"class_list":["post-703004","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-andy-burnham-becomes-new-pm-pa2026","tag-headlines","tag-news","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/703004","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=703004"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/703004\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/703005"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=703004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=703004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=703004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}