London: UK Prime Minister Andy Burnham chaired his first Cabinet meeting on Tuesday, pledging a "one-team" approach to governance and declaring that tackling the cost-of-living crisis will be his government's top priority.
In his first major policy announcement since taking office, Burnham unveiled a tax relief measure aimed at reducing household expenses.
The government announced that value-added tax (VAT) on domestic electricity bills will be abolished from October 1, a move expected to save the average household around $61 annually.
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Officials estimate the tax cut will cost approximately $1.15 billion during the current financial year. According to the government, the measure will be funded by scrapping the previous administration's proposed digital identity programme.
Addressing his inaugural Cabinet meeting, Burnham said his administration would be a "cost-of-living government," focused on delivering immediate financial relief to households while maintaining fiscal responsibility. He also directed ministers to prioritise policies that reduce everyday living costs.
The Prime Minister indicated that the government is considering additional measures, including rent controls and limits on bus fares, as part of a broader strategy to ease the financial burden on families. Burnham stressed that every policy introduced by his government would be supported by clearly identified sources of funding.
In another significant announcement, Burnham confirmed that he will spend at least one day each week working from Manchester under a new initiative called "No. 10 North."
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The plan is designed to shift parts of government operations away from London, decentralise political power and strengthen regional governance across the United Kingdom.
Government officials said staff have already begun operating from the Manchester office, with further relocation of departments expected in the coming months.
Meanwhile, Burnham's appointment has drawn mixed reactions from the public. While some Britons expressed optimism about the new Prime Minister's leadership and cited his record in Manchester, others said they were still unfamiliar with his policies and preferred to wait and see how his government performs.
Many residents said they hoped the new administration would provide stability after a period of frequent leadership changes, while acknowledging that the government faces significant domestic and international challenges.
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