New UK Prime Minister Burnham Cuts Electricity Tax

New UK Prime Minister Andy Burnham has announced a tax cut aimed at easing the cost-of-living crisis as part of measures unveiled ahead of his first cabinet meeting on Tuesday.

The announcement comes just one day after Burnham replaced Keir Starmer as Prime Minister, with the government confirming that the five per cent VAT on household electricity bills will be removed from October.

Business Minister Jonathan Reynolds described the move as a major announcement at the first cabinet meeting of the new administration.

According to the government, the tax cut will save households about £45 a year and will be funded by cancelling plans to introduce digital identity cards.