Andy Burnham makes instant decision on change to electricity bill prices after becoming PM
Well, it’s not yet been 24 hours and Andy Burnham is already introducing changes.
The former Mayor of Greater Manchester became Prime Minister yesterday (20 July), promising that he would deliver ‘a new political model and a new economic model’ for Britain.
And after making sweeping changes to the Cabinet last night, he has this morning unveiled a VAT cut to help people with the cost-of-living crisis. Yep, it appears Burnham has made an instant decision on making a change to electricity bills.
He had promised in his address to the nation yesterday that he would be quickly getting to work with setting out measures to help with the cost of living.
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There are many announcements expected today and this early announcement seems to be just the beginning.
Burnham announced with his new Chancellor John Healey that VAT will be removed from domestic electricity bills from 1 October.
'We’re taking immediate action to cut taxes on energy bills'
The new PM said: “Westminster has not been working for people for too long, with families struggling with the cost of living. That needs to change. I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as Prime Minister.
“We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”
And Healey added: “For too long, too many people have struggled with the cost of living. Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.
The chancellor continued: “This measure is funded this year from cancelling the Digital ID programme, and it will help bring down inflation while supporting households in every postcode.”
It’s estimated that the change will reduce the annual Ofgem price cap by roughly £45 from October, with companies expected to pass the reduction onto customers.
In his first speech outside Downing Street, notably minus the lectern, Burnham promised to provide early ‘breathing space’ for households struggling with the cost of living.
'We have not been good enough, and we need to be better'
His address also included his vow to end rough sleeping and saw him lay out his ambition to ‘reindustrialise Britain’.
Burnham believes it is a time for ‘reflection and new resolution’, adding that: “Britain needs to show the world that we can regain our stability once again.”
The Everton supporter continued: “I know people at home are fed up with politics. I hear you and I want to be honest with you – we have not been good enough, and we need to be better. We will be.
“We will make this moment a circuit breaker for Britain, bringing forward the biggest changes in the last 40 years – a new political model and a new economic model.”
'Investing in people’s success rather than paying for failure'
His speech also included: "We will help more young people into work by changing the education system and giving them more support, more mental health support, and we will build more council homes.
"That is the fair and sustainable way to bring the welfare bill down, to meet our fiscal rules, and to honour our commitments on defence to our international partners.
"We will help people to live well, building a more preventative state, investing in people’s success rather than paying for failure. And that work starts now.
"I will soon go through that door behind me and issue my first instruction to end rough sleeping in our country."
Topics: Cost of Living, Politics, UK News
Jess Battison