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Andy Burnham presses cabinet on funding for UK cost of living plan
The proposal includes removing VAT from electricity bills starting Oct. 1 and reducing the electricity price cap by £45, at a stated cost of £850 million next year.
UK Prime Minister Andy Burnham urged his cabinet to consider “all possible ways” to address the cost of living crisis as critics pressed him on how the government will pay for its pledges, according to The Guardian Business. The prime minister set the goal of making life cheaper for voters within existing borrowing rules.
On Burnham’s first full day, questions focused on funding for measures including removing VAT from electricity bills and an expected increase in defense spending, an issue that preceded the resignation of his new chancellor John Healey from his previous role as defense secretary.
The Guardian Business also reported that the government plans to reduce the national bus fare cap by a third, from £3 to £2, with an announcement expected Wednesday. The outlet added that Burnham intends to accelerate the timetable for implementing a national care service, which it said could require additional money before the election.
Burnham kicked off the cost of living effort on Tuesday, announcing VAT would be removed from electricity bills from Oct. 1. The plan is set to reduce the electricity price cap by £45 and carry a total cost of £850 million next year, The Guardian Business reported, alongside broader changes to Whitehall.