Andy Burnham latest: New PM cuts VAT on electricity bills in first major policy announcement

UK government borrowing fell to £16bn last month, according to official figures; This fell below what forecasters expected, thanks to falling debt interest costs linked to inflation.

The Office for National Statistics (ONS) said this meant the public sector net borrowing figure for June was £7.9bn, or 33.1%, lower than in the same month in 2025.

This was also £300 million below the Office for Budget Responsibility (OBR) forecast and £2 billion less than most economists expected.

Borrowing between April and June was 1.9% of the UK’s gross domestic product (GDP); this represented the 10th highest period since comparable records began in 1993.

It has been revealed that Andy Burnham is expected to meet Donald Trump in Manchester for the G20 Summit next year after the pair spoke for the first time just minutes after the new prime minister entered No 10.

Mr Burnham reportedly extended the invitation to the US president in one of his first calls since entering Downing Street.

While White House sources did not give any details about the phone call, it is understood that new oil and natural gas drilling in the North Sea was also discussed.

Chancellor John Healey said the VAT cut on electricity would be funded by the cancellation of the Digital ID scheme.

“Too many people have struggled with the cost of living for too long,” he said.

“Today’s energy tax cut will give families some breathing room on bills and provide some reassurance this winter.

“This measure was funded by the cancellation of the Digital ID scheme this year and will help reduce inflation while supporting households in every postcode.”

Chancellor John Healey said the cut would be funded by the cancellation of the Digital ID programme.

“Too many people have been struggling with the cost of living for too long,” he said. “Today’s energy tax cut will give families some breathing room on bills and provide some reassurance this winter.”

Standing on the steps of Number 10 on Monday, the new prime minister pledged to provide early help to households struggling to make ends meet and promised to announce details today.

Andrew Burnham, who took over as prime minister by promising a “circuit breaker” for British politics, started his term with a bang. The new Prime Minister has carried out a brutal purge of Starmer loyalists, sacking more than nine ministers with close ties to his predecessor. David Lammy, Darren Jones, Rachel Reeves and Peter Kyle left the government, while others, including John Healey, suffered shock promotions.

Here, Independent It looks at the biggest winners and losers so far from today’s brutal change.

Andy Burnham gave his inaugural speech as prime minister, giving the nation more details about his plans and vision for his time in office.

The former Greater Manchester mayor ran uncontested for the position after securing the support of 349 Labor MPs, making it impossible for anyone to stand against him.

He became leader of the Labor Party on Friday and met with King Charles today to form a government following the formal resignation of Sir Keir Starmer.