UK’s Burnham eyes lower energy bills in first move as PM

Newly appointed UK Prime Minister Andy Burnham has announced a cut to domestic electricity bills by removing VAT from October 1st. This measure aims to alleviate the cost-of-living crisis and is funded by scrapping the digital ID scheme. Burnham, who replaced Keir Starmer, also sacked several Starmer loyalists from his cabinet, appointing allies to key positions, including John Healey as Chancellor. In his first day, Burnham spoke with US President Donald Trump about various topics, including trade and military alliances. Ed Miliband was appointed Foreign Secretary, a controversial choice given his past energy policies and Trump's criticism of them. Burnham pledged continued support for Ukraine.

The UK government borrowed £16 billion in June, less than economists predicted and £7.9 billion less than in June 2025, according to the Office for National Statistics. This figure, partly due to lower debt interest costs, provides a boost as Prime Minister Andy Burnham announced plans to cut VAT on household electricity bills from October. Chancellor John Healey stated this cut would be funded by cancelling the digital ID program this year. Burnham and Healey aim to adhere to Labour's fiscal rules while addressing the cost of living. Despite the positive borrowing figure, the UK's debt burden continues to rise, presenting potential trade-offs for the government.

Andy Burnham became the new British Prime Minister on Monday, succeeding Keir Starmer. He was formally invited to form a government by King Charles III. Burnham pledged to implement a "new political model" and a "new economic model," aiming to decentralize power from London and put essential services under stronger public control. He announced plans for a 10-year plan for Britain, focusing on re-industrialization, support for young people, and building council homes, with an immediate priority to end rough sleeping. Burnham also acknowledged the public's frustration with politics and the need for greater stability. His agenda signals a departure from Thatcher-era policies, and he faces potential friction with Washington due to his past criticisms of Donald Trump.

British Prime Minister Andy Burnham announced his first policy initiative, a cut to electricity bills, aiming to address the cost-of-living crisis. Starting October 1st, his government will remove value-added tax from domestic electricity bills, which is expected to save households approximately £45 annually on an average bill of £1,862. This measure is intended to signal his commitment to bringing change and easing public anger. The funding for this tax cut will come from savings generated by the cancellation of a £1.8 billion digital ID program. Burnham made this announcement on his second day in office, with bond investors monitoring the fiscal implications of such support.

Andy Burnham has announced a cut to VAT on electricity bills as his first cost-of-living initiative. This measure is anticipated to save households approximately £45 annually. However, a former minister has raised concerns, labeling the plan as "unfunded." Separately, António Costa, President of the European Council, reported a phone call with Andy Burnham where they discussed strengthening EU-UK relations and cooperation in supporting Ukraine. Their conversation also touched upon common geopolitical challenges facing Europe, which Costa indicated could encompass various issues including soaring energy prices, Europe's relationship with Washington, the future of NATO, hybrid warfare, and rising national populism.

In his first address as prime minister, Andy Burnham pledged to end rough sleeping in England. He announced an additional £340 million over three years to fund this initiative, aiming to replicate successful homelessness schemes implemented in Greater Manchester. This funding, sourced from unused housing department budgets, will support the creation of 1,200 new homes and assist 3,000 individuals over five years. While homelessness campaigners welcomed the pledge, critics expressed skepticism, citing rising street homelessness in Greater Manchester during Burnham's tenure as mayor. Burnham stated his government would immediately work to bring together national and local efforts with the necessary investment.

Keir Starmer, the outgoing Prime Minister, has not ruled out creating a resignation honours list when he leaves Downing Street in just over ten days. This stance contrasts with his previous public statements in 2023, when he opposed such lists, citing difficulty in justification. Starmer's potential honours list would be subject to approval by his successor, Andy Burnham, and the House of Lords appointments commission. Traditionally, outgoing prime ministers are permitted to nominate individuals for honours. The article also notes that Andy Burnham is nearing confirmation as Starmer's successor in the Labour leadership contest, having secured a significant number of nominations.

British Prime Minister Keir Starmer is stepping down, triggering a Labour Party leadership contest. Nominations opened on Thursday, with candidates requiring support from 20% of Labour MPs and affiliated organizations. Former Greater Manchester Mayor Andy Burnham is the sole declared candidate and the clear frontrunner, having recently become an MP. If no other candidates emerge, Burnham could become Prime Minister this month. Burnham, who advocates for devolution and increased living standards, has garnered support from prominent Labour figures. The voting process for party members and unions will occur between August 6 and August 27, with results expected on August 29.

Nominations are now open for the Labour Party leadership contest to replace Keir Starmer, with former Greater Manchester Mayor Andy Burnham expected to be the sole candidate. Other potential contenders have withdrawn, with former Defense Minister Al Carns publicly backing Burnham. Burnham needs at least 80 signatures from Labour lawmakers to run, a target he is likely to exceed. Nominations close on July 16, and Burnham is anticipated to be announced as the new leader the following day, potentially becoming prime minister on July 20. Starmer resigned after two years in office due to declining public and party standing. Burnham plans to implement an investment-focused approach called "Manchesterism" to address economic challenges, while also committing to continuity in foreign policy, including NATO commitments and support for Ukraine.

Andy Burnham, widely expected to become the UK's next Prime Minister, has apologized for the Labour Party's past stance on the conflict in Gaza. Speaking in a social media video, Burnham stated the party "didn't get it right" and needs to improve its approach. He acknowledged the "unbearable suffering" in Gaza and pledged to increase pressure on the Israeli government, while reiterating condemnation of Hamas attacks and antisemitism. Burnham criticized the Israeli government's actions, including settlement expansion, and expressed commitment to keeping the prospect of a two-state solution alive. This comes amid growing public pressure in the UK, with polls indicating a significant portion of the British public believes Israel is committing genocide in Gaza, and a notable shift of Labour voters to other parties over the issue.

Andy Burnham, a likely candidate for Prime Minister, has publicly apologized on social media for the Labour Party's initial position regarding Israeli attacks in Gaza. Burnham stated his intention to work towards "stopping the suffering" in the region. The article does not specify when this apology was made or provide further details on the Labour Party's initial stance. The focus of Burnham's statement is on addressing the humanitarian crisis in Gaza.