Andy Burnham latest LIVE: New PM's Cabinet meets for first time after Labour attack on electricity bills tax cut

Andy Burnham has announced single bus fares across England will be capped at £2 from January in the latest cost-of-living measure from the new Prime Minister. The nationwide cap is currently set at £3 until the end of March 2027 although some areas – including London and Greater Manchester, where Mr Burnham set a £2 limit as mayor – have lower top rates for single tickets.The measure is backed by £454 million of funding – including money to allow devolved governments to take similar action.The £2 cap will be in place throughout 2027 and reverses an increase put in place by Sir Keir Starmer and Rachel Reeves in 2024.It comes as a new poll shows Reform UK’s lead has evaporated since Mr Burnham took over from Sir Keir Starmer.A “Burnham bounce” has seen support for Labour jump eight points compared to mid-June, bringing Labour level with Nigel Farage’s party on 28%. Follow the latest updates below...ICYMI: Sarwar set to quit as Scottish Labour leader to become minister in Burnham's governmentAnas Sarwar is set to quit as Scottish Labour leader to be a minister in Andy Burnham’s Government.Mr Sarwar will be elevated to the Lords to take up a ministerial post at the revamped Department for Business, Innovation, Science and Trade, headed by Jonathan Reynolds, according to reports.The Scottish Labour leader called for Sir Keir Starmer to step down as prime minister in February, and hailed successor Mr Burnham for his “bold Labour vision” as he entered No 10 this week.Former Greater Manchester mayor Mr Burnham appointed his Cabinet on Monday after taking office, but many ministerial appointments are still to come.Mr Sarwar has been Scottish Labour leader since 2021.Anas SarwarPABurnham announces bus fare capSingle bus fares across England will be capped at £2 from January, Prime Minister Andy Burnham has announced.The nationwide cap is currently set at £3 until the end of March 2027 although some areas - including London and Greater Manchester, where Mr Burnham set a £2 limit as mayor - have lower top rates for single tickets.Mr Burnham said: “Good, affordable transport links are an essential. No one should be priced out of those and left behind.“But for too long people have said that cheaper transport isn’t an option. I don’t accept that. I’ve done it before and I will do it again now: a £2 cap on bus fares for millions across the country.“Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living.”Prime Minister Andy BurnhamPA ArchiveThe measure is backed by £454 million of funding, including money to allow devolved governments to take similar action.Some £400 million of that funding will come from switching investment in international climate finance to loans, with the rest from savings in the Department for Energy Security and Net Zero budget.The total cost of the scheme is expected to be more than £500 million, with the rest coming from Department for Transport funding already allocated to buses.The £2 cap will be in place throughout 2027, and reverses an increase put in place by Sir Keir Starmer and Rachel Reeves in 2024.Good morningWe are now resuming our live coverage of Andy Burnham’s first days as Prime Minister.We will be bringing you all the latest news from throughout the day.Scottish Labour leader Anas Sarwar to be made a ministerScottish Labour leader Anas Sarwar is to be made a peer and appointed as a minister in Andy Burnham’s Government, sources say.Anas Sarwar 'set to quit as Scottish Labour leader to be a minister in Burnham's goernment'Anas Sarwar is set to quit as Scottish Labour leader to be a minister in Andy Burnham’s Government, according to reports.Mr Sarwar will be elevated to the Lords to take up a ministerial post at the revamped Department for Business, Innovation, Science and Trade, headed by Jonathan Reynolds, according to media including the Scottish Sun.The Scottish Labour leader called for Sir Keir Starmer to step down as prime minister in February.He hailed successor Mr Burnham for his “bold Labour vision” as he entered No 10 this week.Former Greater Manchester mayor Mr Burnham appointed his Cabinet on Monday after taking office, but a raft of ministerial appointments are still to come.Mr Sarwar has been Scottish Labour leader since 2021.Anas SarwarGettyCivil servants already working at Manchester base says Downing StreetCivil servants are already working at Andy Burnham’s new Manchester-based No 10 North, which will cost taxpayers no extra money, Downing Street has said.The Prime Minister’s official spokesman told reporters: “Staff are already working in the new No 10 North. This includes staff from Manchester and those who have come in from around the country.“It is based at existing UK Government offices in Central Manchester and you can expect more updates in due course.”The official also said: “The running of No 10 North will be covered by existing Cabinet Office budgets. There is no additional cost to taxpayers.”On the question of relocation packages for London-based personnel to move there, he said it is “standard practice” for employers to support staff required to relocate.The spokesman said numbers would be detailed in due course, adding: “We already have around 80,000 civil servants based in the North West of England, with around 700 roles moved from London to Manchester” last year.Mr Burnham “expects to work from No 10 North at least one day a week,” his spokesman said, while caveating that his diary could change depending on the business of Government.British Gas says it is 'encouraging' to see the new PM move quickly on energy billsThe boss of British Gas owner Centrica said it is “encouraging to see the new Prime Minister move quickly” to cut household energy bills after announcing an £850 million cut to VAT on electricity bills.Chris O’Shea, group chief executive of Centrica, said: “Any reduction in bills will be welcome news for customers and it’s good to see affordability being made a priority from day one.“We will, of course, be passing this reduction on to our customers.“We’ve been clear for a long time that help should be targeted at those who most need it.“We continue to believe that the most sustainable solution would be a targeted social tariff to support vulnerable households, and we look forward to helping the Government deliver that at the earliest possible opportunity.”Chris O’Shea is chief executive of British Gas owner Centrica PA ArchiveBurnham's conversation with Trump was 'very warm', No10 saysAndy Burnham’s conversation with Donald Trump was “extremely warm” and lasted around 20 minutes, Downing Street has said.The Prime Minister’s spokesman told reporters: “It was an extremely warm call and I think that’s reflected in both sides’ read-outs.”Burnham pictured with his Cabinet todayAFP/GettyBurnham's plan to cut VAT is 'fully funded' says No10Downing Street has insisted Andy Burnham’s plan to cut VAT from electricity bills is fully funded.The Prime Minister’s official spokesman said: “It’s fully funded and will come into effect from October the first, and it applies and is funded for this financial year.”The Government previously said the £1.8 billion cost of the digital ID scheme over three years had been “scored” by the Office for Budget Responsibility, meaning the money would have had to be found.The spokesman was asked about the scoring of the digital ID programme and which funding is to be shifted from it for the VAT cut, as the Office for Budget Responsibility previously said that money for digital ID still needed to be found.Put to him that the cut was being funded through unidentified savings, he said: “What we’re doing is we’re funding this through the cancellation of the digital ID programme.“Departments were going to have to fund the Digital ID programme through their existing budget reprioritisation.“Departments will now direct these savings towards this.”Ed Miliband takes call with Ukraine Ed Miliband’s first diplomatic call as Foreign Secretary was with his Ukrainian counterpart, he has said.“I underlined the UK’s steadfast and resolute commitment to the people of Ukraine,” the new Foreign Secretary wrote on X.The former Labour leader also said: “Ukraine is on the frontline of the fight for the values of freedom and democracy in Europe.”Andrii Sybiha, Kyiv’s acting minister of foreign affairs, wrote on social media that he congratulated Mr Miliband on his new role “and thanked the United Kingdom for its steadfast support for Ukraine since the first days of Russia’s full-scale invasion, including military, energy, humanitarian, economic and sanctions assistance”.Mr Sybiha added: “I briefed my colleague on the latest developments on the battlefield and thanked him for his solidarity following Russia’s latest massive attack on Kyiv. We discussed further strengthening our cooperation, continued military assistance, support for Ukraine’s energy sector ahead of winter, increasing pressure on Russia.“I invited Foreign Secretary Miliband to visit Ukraine. I wished him and his team every success in their important work and look forward to working closely together to further strengthen the vital Ukraine–UK partnership.”A Foreign Office spokesperson said their call showed the Government’s “commitment to continue to stand shoulder to shoulder with the people of Ukraine, as Britain has done for the last four years”.Foreign Secretary Ed Miliband used his first diplomatic phone call to speak with his Ukrainian counterpart PA Wire