Andy Burnham will scrap plans for a government-issued digital ID for all British adults when he becomes prime minister on Monday, redirecting the resources earmarked for the scheme towards tackling the cost of living. The move, which follows plans for new oil and gas drilling in the North Sea, is intended to shift focus to "the daily priorities facing people across the country", Burnham's office said.
Under Sir Keir Starmer, the government had already watered down proposals to introduce a mandatory digital ID for workers after nearly three million people signed a parliamentary petition opposing the scheme. The Office for Budget Responsibility estimated the programme would cost £1.8 billion over three years, but Downing Street rejected that figure. Now, by dropping the plans entirely, Burnham's spokesperson said, "the time and resource that was going to be spent on a national ID scheme will go instead to where it's most needed, such as helping with the cost of living."
“Burnham to scrap digital ID, redirect £1.8bn to cost of living”
The decision to scrap the ID card is the first major policy pledge from Burnham, who won the overwhelming support of Labour backbenchers to replace Starmer. In his first speech as Labour leader, Burnham vowed to deliver "the most significant change moment in our politics for 40 years", arguing that Britain took a wrong turn in the 1980s with four decades of neoliberalism. He promised to decentralise power, starting with relocating part of No 10 Downing Street to Manchester.
Burnham faces a raft of immediate political problems. According to his team, ideas floating around include introducing a year-long rent freeze for the private sector, a reduced cap on bus fares, and removing green levies from energy bills, funding them through tax instead. Thinktank Nesta has drawn up a proposal under consideration that would cut the average energy bill by £130 a year by shifting green levies from bills to general taxation. However, Starmer has left Burnham with a £4.7bn black hole in defence investment plans, and inflation triggered by the Iran war has depleted fiscal headroom.
Burnham is also planning a major shake-up of the Foreign Office. Senior Labour sources have told The Independent that a key move will be to lay out a clear stance on the UK's involvement in the war in Iran and to establish a relationship with Volodymyr Zelensky over Ukraine's war against Russia. There is a growing belief that energy secretary Ed Miliband will be handed the role of foreign secretary, with permission to prioritise tackling climate goals through the department. A return to spending 0.7% of GDP on international aid is also expected, after Starmer and Rachel Reeves cut it to 0.2%.
On electoral reform, pressure is mounting. In May, Labour MP Alex Sobel brought an amendment to the Representation of the People Bill calling for a national commission on electoral reform, garnering support from 96 Labour MPs. Burnham has stated he is committed to proportional representation.
As he prepares to enter Downing Street, Burnham is taking advice from Sue Gray, Starmer's former chief of staff, in an unofficial capacity. The incoming prime minister has set himself a huge test: to deliver the biggest change of direction in British politics for four decades, while confronting a cost-of-living crisis, a defence funding shortfall, and a foreign policy landscape reshaped by war.