New UK Prime Minister Andy Burnham has launched his term with a package of measures focused on reducing the cost of living, addressing the housing crisis and strengthening the welfare state.
The first announcements are aimed at setting the political direction of his government from its opening days, with a focus on easing financial pressure on households and expanding public support.
Energy bill VAT cut announced
A key measure is the removal of the 5% VAT on household electricity bills from 1 October.
According to the government, the move is expected to reduce annual energy costs for millions of households. The measure will be funded by cancelling plans to introduce a national digital identity system.
Housing and homelessness measures
Burnham also announced the launch of a national programme to tackle homelessness, with £340 million allocated as the first phase of a five-year plan.
The government aims to build more social housing and provide support for thousands of people currently living without permanent accommodation.
The Prime Minister also pledged to speed up the construction of council housing and address the wider housing shortage.
Further cost-of-living support
Additional measures are being considered to help households cope with rising costs, including a possible rent freeze, maintaining lower public transport fares and further support for energy bills.
Burnham also announced reforms in education and the labour market, aimed at improving young people’s access to employment and strengthening mental health services.
Long-term economic plan ahead
The Prime Minister said a 10-year economic recovery plan would be presented in the coming months, focusing on reindustrialisation, devolving powers and increasing the role of the state in delivering essential public services.
Analysts say the first decisions of the new government reflect Burnham’s intention to prioritise the cost-of-living crisis, housing pressures and social inequalities, while delivering on commitments made during his Labour leadership campaign.
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