Andy Burnham first Cabinet meeting overshadowed as new PM faces questions over how he will fund key pledges

ANDY Burnham’s first Cabinet meeting yesterday was overshadowed by an embarrassing failure to spell out how he will pay for key spending commitments. The new Prime Minister’s cost-of-living plan faced accusations by a scorned Sir Keir Starmer ally that the flagship energy bill savings were unfunded. Andy Burnham’s first cabinet meeting as Prime Minister was overshadowed by a failure to detil spending for his new policies Credit: EPA Burnham’s cost-of-living plan faced accusations that the flagship energy bill savings were unfunded Credit: EPA No10 also refused to commit to spending three per cent of GDP on defence by 2030, despite new Chancellor John Healey demanding the cash when he quit the Ministry of Defence. The humiliating episodes — 24 hours after Mr Burnham took office — came even as he told his top team they must “always show how we are going to pay for new policies”. Sign up for the Politics newsletter Thank you! The Government announced yesterday that VAT on electricity bills will be cut to zero from October. MoneySavingExpert Martin Lewis told Times Radio the move would only put less than “a pound a week” in people’s pockets. READ MORE ON ANDY BURNHAM Ousted Cabinet Minister Darren Jones was sacked over the phone by the new PM Credit: Alamy Jones disputed Burnham’s claim that the axed digital ID scheme would fund new policies And ousted Cabinet Minister Darren Jones — who revealed he was sacked over the phone by the new PM — insisted the £850million cost of the move was unfunded. Mr Burnham insisted it would be paid for by scrapping the proposed digital ID scheme. But Mr Jones said: “The DigitalID program was unfunded. The Government will have to set out how it will pay for its new policies at the Budget.” Writing in The Sun today, Tory leader Kemi Badenoch says his intervention “blows a hole” in the new administration’s funding claim. Most read in The Sun She writes: “Jones should know . . . he was the minister responsible for the very programme Burnham now says will pay for this policy. His verdict was devastating.” Despite the typical £45-a-year VAT saving, energy firm EDF Energy forecasts the energy price cap will go up to £1,760 in the autumn, from the current £1,663 — an increase of £97 that will cancel out the saving. Serious questions were also being raised over whether the new PM will back one of his Chancellor John ­Healey’s biggest demands. He dramatically quit as Defence Secretary last month after Sir Keir Starmer refused to commit to lifting defence spending to three per cent of GDP by 2030. Tory leader Kemi Badenoch says the dispute undermines the new administration’s funding claim Credit: Getty Images New Chancellor John Healey was previously the Defence Secretary and clashed with former PM Starmer over funding Credit: PA But Downing Street yesterday refused to make the same promise, saying they would honour commitments to international partners and set out plans in “due course”. One minister told The Sun: “This is a really bad look for John. How can he stay in post?” It came despite Mr Burnham hailing Mr Healey’s appointment as a “signal of intent” on defence spending. No10 has also repeatedly refused to set out funding for flagship promises such as building 500,000 council homes, and failed to say how much it will cost to take more control of troubled Thames Water or to cut student loan repayments. The Government also declined to commit to key policies of the Starmer Government, including the handover of the Chagos Islands and plans to reduce jury trials. At Mr Burnham’s first gathering of his new Cabinet in Downing Street, he told them that Labour needed “a second chance at a first impression”. He also said they have to show “discipline” with the public finances and “look for all possible ways” to help the public to “take a little bit of pressure off people’s shoulders”. The meeting also saw new Foreign Secretary Ed Miliband awkwardly applaud John Healey, who pipped him to the job of Chancellor — replacing Rachel Reeves. New Foreign Secretary Ed Miliband had been hoping to land the role as Chancellor Credit: PA Rachel Reeves was axed as Chancellor and turned down the Education Secretary job Credit: PA She turned down Education Secretary, The Sun can reveal, which paved the way for Lucy Powell to get it. The new Cabinet also marked a return for Louise Haigh who will be the PM’s right-hand woman as First Secretary of State, Chancellor of the Duchy of Lancaster. She had been fired by Sir Keir for failing to reveal a fraud conviction. Previously her new role included oversight of the Public Sector Fraud Authority — but that has been taken off her hands. Meanwhile, Scottish Labour leader Anas Sarwar is to step down and become a minister after being elevated to the House of Lords. He was the first senior party voice to call for Sir Keir to resign. OFFICIAL PARLIAMENT PORTRAITS // Angela Rayner MP Credit: PA Zero zealot By Tom Scotson THE new Energy Secretary called for Britain to race towards Net Zero by 2034 — going even further than her predecessor Ed Miliband ever planned. Miatta Fahnbulleh said in 2019 that Government should slash carbon emissions far faster than the current 2050 timeline. Ms Fahnbulleh wrote in Foreign Affairs magazine that “the goal should be Net Zero carbon ­emissions within ten to 15 years” with “significant investment in green infrastructure”. Shadow Energy Secretary Claire Coutinho said what Britain really needs is drilling in the North Sea and axing carbon taxes to save industry. The Government said: “Net Zero is the economic opportunity of the century. We’ve secured £100billion in private investment into clean energy this parliament.” Comment now