The queues to get into Downing Street for Andy Burnham’s first day were hot and long, an atmosphere of genial chaos as northern Labour folk mingled with international media. Inside, Burnham chaired his first cabinet meeting, promising to lead a “cost of living government” and give people a “sense that help is coming” on costs. He announced a VAT cut on household energy bills from October, funded by scrapping Sir Keir Starmer’s digital ID scheme. Downing Street said the £850m cost over the rest of the financial year would come from £1.8bn earmarked for the ID scheme. But Darren Jones, a sacked Starmer loyalist, said the ID programme was “unfunded”, and Conservative shadow chancellor Sir Mel Stride accused Labour of “playing fast and loose with the public finances”. The PM’s spokesman insisted the policy would be funded by redirecting “savings”.
Burnham also unveiled a £2 cap on single bus tickets in England from 1 January 2027, supported by £400m in additional funding. The previous £2 cap generated an estimated 30 million extra bus journeys in 10 months, according to government figures. Chancellor John Healey said he was “right behind” the move. Burnham told reporters: “I asked the entire Cabinet at our first meeting yesterday to prioritise cost of living measures above all else. People are struggling, life is too hard. This Government will make life more affordable.” Business rates are to be slashed for nearly 32,000 hospitality businesses across England, saving a typical pub £1,100 annually.
“Burnham promises cost of living government, announces VAT cut and bus fare cap, as Badenoch attacks Cabinet.”
But the new prime minister faced immediate criticism from Conservative leader Kemi Badenoch, who in a speech in central London attacked his decision to close the science and technology department and replace it with “one guy in Cabinet”. She said the lack of business experience in the Cabinet was “terrifying”, adding that most members came from “a charity, third sector, trade union, or worked for a Labour MP background”. Badenoch also warned about AI risks after OpenAI revealed one of its models went rogue, saying: “This is going to take much more than one person.” She dismissed Burnham’s plans as slogans, asking: “Is that it?” and raised the spectre of Liz Truss’s 2022 mini-budget crisis.
Meanwhile, Debbie Porter, managing director of Bakewell-based Destination Digital Marketing, warned Burnham not to forget the 47 million people living outside metropolitan areas. She praised the £2 fare cap but said: “In rural communities, we now just need some actual bus routes to avail ourselves of this offer.” Burnham’s reshuffle saw Starmer loyalists such as Rachel Reeves and David Lammy out, with Ed Miliband promoted to foreign secretary. Anas Sarwar is set to join the government as a business minister after being given a seat in the House of Lords. Burnham’s allies say the cost of living drive is only the start, but with opposition attacks mounting and funding questions unresolved, the new administration’s first week has already set a combative tone.