Andy Burnham has announced that VAT will be removed from household electricity bills in a cost-of-living boost to millions.The tax cut, taking the rate from 5% to 0%, will come into force on October 1, the new Prime Minister said on Tuesday morning. It comes as Mr Burnham prepares to chair the first meeting of his newly-appointed Cabinet.The new premier promised to provide early “breathing space” for households struggling with the cost of living in his first address to the nation as Prime Minister on Monday. Follow the latest updates below...Andy Burnham unveils electricity bills tax cut The new Prime Minister has announced a tax cut for household electricity bills.The Government said on Tuesday it would remove VAT from domestic electricity bills from October 1, adding the measure will be funded by savings from the cancelled digital ID programme.It is Andy Burnham’s first big concrete policy announcement since taking over in No10 on Monday. Mr Burnham said: “Westminster has not been working for people for too long, with families struggling with the cost of living.“That needs to change. I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as Prime Minister.“We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”It is estimated that the change will reduce the annual Ofgem price cap by around £45 from October, with suppliers expected to pass savings on to their customers.New Prime Minister Andy Burnham delivers his address outside 10 Downing Street on MondayPA WireGood morningWe’re resuming our coverage of politics as Andy Burnham begins his first full day as Prime Minister.We’ll bring you all the major updates, colour and talking points on what is likely to be another whirlwind day in Downing Street. Coverage ends Our coverage has now ended for the day. For the latest on Prime Minister Andy Burnham’s Cabinet appointments, read more below:Lisa Nandy keeps role as Culture SecretaryLisa Nandy, who has kept her job as Culture Secretary, told reporters she was “very” happy with her job as she left Downing Street smiling on Monday evening.Lisa Nandy will remain as Culture SecretaryPAAndy Burnham speaks to Nato general secretaryAndy Burnham has spoken with Mark Rutte, the Nato secretary general, and German Chancellor Friedrich Merz, No 10 said.Giving a readout of the Prime Minister’s call with the Nato chief, a Downing Street spokeswoman said: “The Prime Minister began by congratulating the Secretary General on the successful Nato summit held in Ankara earlier this month, and the strong signal of unity it sent to the world in such volatile times.“Updating on the appointment of the former defence secretary, John Healey, as the new Chancellor of the Exchequer, the Prime Minister said the appointment was a signal of his intent.“The leaders also discussed the situation in Ukraine, and the Secretary General welcomed the Prime Minister’s strong statement of support for Ukraine earlier today.”In a separate readout of the call with Mr Merz, the Downing Street spokeswoman said: “The Prime Minister spoke to the Chancellor of Germany, Friedrich Merz, this evening. It was clear the relationship between the UK and Germany was vital to delivering for people in both countries, the Prime Minister said.“Both leaders underlined their ambition to increase cooperation under the Kensington Treaty, and the Prime Minister said he would ask his teams to accelerate work on implementation.“Discussing Ukraine, the Prime Minister looked forward to working with Chancellor Merz and President Macron as they drove the Coalition of the Willing forward to support a just and lasting peace.”Prime Minister Andy Burnham PA WireScience and Business departments merged, Downing Street saysDowning Street said it has merged the Department of Science and Innovation with the Department of Business and Trade.Jonathan Reynolds MP has been named as Secretary of State for Business, Innovation, Science and Trade.Jonathan Reynolds leaving number 10 Downing StreetPAOnline safety minister enters No10Online safety minister Kanishka Narayan has entered 10 Downing Street.He was followed by Foreign Office minister Hamish Falconer.Environment Secretary Emma Reynolds and housing minister Matthew Pennycook enter No10Environment Secretary Emma Reynolds and housing minister Matthew Pennycook have entered No 10.Jonathan Reynolds, who has been appointed Business Secretary by the Prime Minister, has now left Downing Street.Bridget Phillipson named Cabinet Minister for Women and Equalities Bridget Phillipson will remain a member of Cabinet as Minister for Women and Equalities, Downing Street has announced.She was previously Education Secretary. More appointments coming in now...Jonathan Reynolds MP has been named Business Secretary, while Lucy Powell has been named Education Secretary.MP Anneliese Midgley MP has been appointed Chief Whip.
Andy Burnham latest LIVE: Prime Minister removes VAT on household electricity bills as details of Trump call revealed
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