Andy Burnham's first full day as prime minister has been overshadowed by a blistering attack from a former senior aide to Sir Keir Starmer, who branded his flagship VAT cut on electricity bills as 'unfunded'.
Darren Jones, who served as Chief Secretary to the Treasury under Starmer, posted on X that while cutting VAT from household electricity bills from 1 October was 'a simple way for families to save a few quid', the policy lacked a funding mechanism. He pointed to four references in the Office for Budget Responsibility's November 2024 Economic and Fiscal Outlook stating that 'the cost of digital ID cards, for which no specific funding has been identified', and that 'no explicit provision has been made for its £0.6bn annual cost'.
“Burnham's VAT cut criticised as unfunded by former Starmer aide Darren Jones; Angela Rayner returns as housing secretary.”
The criticism comes as Burnham appointed Angela Rayner as housing secretary, bringing her back into the cabinet almost a year after she resigned over an underpayment of tax on the purchase of a new home. Rayner, who had been weighing a leadership bid earlier this year until the resolution of an HMRC investigation cleared her path, instead nominated Burnham for the top job, propelling him into Downing Street uncontested.
In his first address from Downing Street on Monday, Burnham promised his premiership would be a 'circuit breaker for Britain' and bring about 'the biggest changes for the last 40 years'. He emphasised the need to end 'factionalism' within the Labour Party, hours before Jones's public breach of that unity.
Meanwhile, the ousted Sir Keir Starmer was seen at a pub in Kentish Town, north London, with former chancellor Rachel Reeves, as aides donned 'Sparkle with Starmer' T-shirts for farewell drinks after leaving No 10. Burnham will gather his cabinet for the first time at lunchtime, after Monday night's appointments stretched into the early hours – with Wes Streeting eventually named defence secretary.
Rayner, who grew up on a council estate in Stockport and left school without qualifications, has described herself as 'mouthy' and rose through the ranks of the Unison union. She will play a key part in Burnham's drive to devolve power and build council houses, but the new prime minister must now set out how he will pay for his policies, as he promised in his first speech.
