Burnham tells cabinet to tackle living costs at first meeting

ByPaul Seddon

Political reporter

Andy Burnham has promised to pb a "cost of surviving government," arsenic helium chaired his archetypal furniture gathering arsenic premier minister.

He told his newly-assembled apical squad that helium wanted to marque surviving expenses a cardinal priority, and springiness radical a "sense that assistance is coming" connected costs.

It comes aft helium announced a VAT chopped to household vigor bills from October, successful his archetypal large announcement since taking office.

But his program to wage for the argumentation by scrapping Sir Keir Starmer's integer ID strategy led to an aboriginal enactment implicit whether the program was decently funded.

Downing Street said the estimated £850m outgo of the VAT chopped implicit the remainder of the fiscal twelvemonth could travel from £1.8bn earmarked by the erstwhile authorities to rotation retired the integer ID strategy successful the adjacent 3 years.

But Darren Jones, who was among a clutch of Starmer loyalists sacked from the furniture connected Monday, said the ID programme was "unfunded" and Burnham would request to acceptable retired wherever the wealth would beryllium found.

Opposition parties besides seized connected the announcement, pointing retired the government's fund watchdog has antecedently said the wealth to money integer ID was owed to beryllium recovered from wrong existing budgets.

"We are lone 1 time successful and already Labour are playing accelerated and escaped with the nationalist finances," said Conservative shadiness chancellor Sir Mel Stride.

The PM's spokesperson insisted the argumentation would beryllium funded by redirecting "savings" identified by departments to screen the outgo of the ID scheme.

Burnham was fixed a circular of applause by his elder ministers earlier, arsenic helium opened the archetypal gathering of his caller furniture aft appointing his apical squad connected Monday evening. More inferior picks are expected to travel connected Tuesday.

Monday's wide-ranging reshuffle saw Starmer loyalists specified arsenic Rachel Reeves and David Lammy retired of government, with Ed Miliband promoted to overseas caput and Burnham state Louise Haigh fixed a large occupation moving the Cabinet Office.

In a determination that took Westminster by surprise, John Healey, who resigned arsenic Starmer's defence caput successful a enactment implicit subject spending, has been fixed the important relation of chancellor.

Speaking astatine the commencement of the gathering attended by broadcasters, Burnham said the outgo of surviving would beryllium an aboriginal priority, with further measures to beryllium announced successful the coming days.

He said helium would beryllium asking ministers to travel up with suggestions to little costs to households, adding: "There are things tin beryllium done, large and small."

He insisted his authorities would ever amusement "how we are going to wage for" policies, adding "discipline" would beryllium required to amusement that it was committed to sticking by its taxation and spending rules.

But helium conceded that backing caller announcements up of his archetypal Budget, wherever large taxation decisions are made, would necessitate ministers to beryllium "prepared to reprioritise" however they allocate their budgets.

This was besides reflected successful Burnham's archetypal announcement connected Monday, a further £340m to tackle unsmooth sleeping implicit 5 years, which is expected to beryllium funded wrong "uncommitted" spending astatine the lodging department.

The announcement connected vigor bills, which volition spot VAT connected household energy reduced from 5% to zero successful England, Wales and Scotland, is estimated to prevention the emblematic household astir £45 a year.

It volition not use successful Northern Ireland owed to post-Brexit rules agreed by the erstwhile Conservative government, with ministers astatine Stormont alternatively offered other wealth from the Treasury to usage connected outgo of surviving measures.

The Conservatives and Reform UK person some antecedently called for the measure, with Nigel Farage calling it a payment of Brexit but insisting it would not "address the existent contented of the outgo of living" and taking purpose astatine greenish levies connected bills.

Meanwhile, further details person been confirmed of Burnham's program for a caller Downing Street portion successful Manchester, known arsenic No 10 North.

The authorities says the unit, expected to beryllium initially acceptable up successful a gathering presently lodging quality work GCHQ, volition beryllium fixed power of aspects of section economical maturation and devolution strategy.

Alongside this, a caller Office for the Prime Minister and the Cabinet volition beryllium created to guarantee departments stay focused connected "top strategical priorities", according to a statement announcing the changes, external.

Civil servants moving successful London person been offered relocation packages to promote them to determination north, it is understood, with Downing Street saying Burnham would effort to enactment from No 10 North "at slightest 1 time a week".