Andy Burnham has told his first cabinet meeting that it needs to be a “cost-of-living government” and help those struggling with high costs.
The new prime minister said he wanted to give Britons the sense that “help is coming”, telling his top team that its mission was to “take that little bit of pressure off people’s shoulders”.
He asked his colleagues to look into what their department could do to ease cost-of-living pressures, “big and small”.
It comes amid backlash over the new prime minister’s plans to remove VAT from household electricity bills from 1 October in the first of what is expected to be a series of policy announcements on Tuesday morning.
Chancellor John Healey said the cut would be funded by cancelling the digital ID programme. But former cabinet minister and Starmer loyalist Darren Jones called for Mr Burnham to explain his financing for the move.
He wrote on X: “The digital ID program was unfunded. The government will have to set out how it will pay for its new policies at the budget.”
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Key Points
- Ministers arrive at No 10 for first Andy Burnham cabinet meeting
- New PM cuts VAT on electricity bills in first major policy announcement
- Sacked cabinet minister disputes funding claims for first major policy
- White House 'deeply concerned' about Ed Miliband's appointment, reports suggest
- Donald Trump breaks silence on 'interesting' conversation with Andy Burnham
- Wes Streeting to be defence secretary
Streeting says Burnham's commitment to defence is 'clear'
15:07 , Nicole Wootton-CaneWes Streeting has said his new department must show it does not ask for taxpayers’ money to fund defence “lightly”.
Speaking at a press conference, the defence secretary said: “The commitment that the prime minister has given to the defence of our nation is clear and will be even more clear in the coming months.
“I’m absolutely delighted that my friend and predecessor John Healey has taken on the challenge of Chancellor of the Exchequer and his position on defence investment is on the record, as is mine.
“We have responsibility, I think, at the Ministry of Defence to demonstrate that every penny of taxpayer money that’s invested in defence is necessary and well spent, to show that we understand the sacrifices that involves from other government departments, in terms of opportunity costs of other things we might fund.
“But also to taxpayers, whether individuals or businesses that are feeling hard-pressed, we don’t take the contribution they make lightly and we don’t make this ask of the country lightly either.”
Mr Streeting said defence sector “opportunities for this country are enormous”.
Burnham's electricity bill VAT cut effectively 'wiped out' by rising energy costs, experts say
15:00 , Nicole Wootton-CaneAndy Burnham’s attempt to save households around £45 per year by scrapping VAT on domestic electricity bills will be largely wiped out by rising energy costs, experts have said.
Analysts at EDF expect the typical annual household energy bill to rise by £97 in October thanks to the Iran war, Bloomberg reports.
Earlier, money saving expert Martin Lewis also suggested that while the policy was a “good” first step, the majority of any savings would likely be eaten up by the energy price cap, which is predicted to rise again in October.
This means that while households may save on VAT, those savings are unlikely to reach their pockets because energy bills will cost more this winter.
Fiscal control must be 'first priority' for Treasury, Healey says
14:51 , Nicole Wootton-CaneNewly-appointed Chancellor John Healey has told staff at the Treasury fiscal control must be his first duty as he said the department can be a “force for a successful Britain”.
He added he is “burning with a passion” for the Treasury as he addressed staff for the first time since being appointed Chancellor by Andy Burnham on Monday.
Mr Healey returns to the department nearly two decades since he last served as a minister in the department.
“I’m still burning with a passion about this institution as a force for stability, for security, for growth, a force for a successful Britain, and a successful Britain now in a much tougher world”, he said.
He listed his five priorities, as fiscal discipline, growth in every postcode, backing Britain in procurement, wealth creation and the cost of living.
“This is the way that we start to build a new economy. This is the way that we start to build new hope,” Mr Healey said.
“This is the way that we start to advance working people in this country.”
Russian warship firing off British coast was 'performative and irresponsible,' Streeting says
14:49 , Nicole Wootton-CaneA Russian warship firing its weapons off the British coast on Monday was “performative and irresponsible”, new defence secretary Wes Streeting has said.
Asked whether the Russian activity was a “message from Vladimir Putin to the new prime minister” Andy Burnham, Mr Streeting said at a press conference: “We should see yesterday’s events as performative and irresponsible.
“It’s not the first time that Russia has behaved like this and frankly it’s the tip of the iceberg of the daily threats that this country faces and our allies face.
“And Russia should be in no doubt about the resolve of this government and this prime minister, our resolve to stand against Russian aggression in Ukraine but also Russian aggression against all of our allies.”
Streeting wants to make sure UK military is 'ready to fight and win'
14:40 , Nicole Wootton-CaneWes Streeting said he wanted to ensure the military is prepared to fight and win a war in his first public event as Defence Secretary.
Speaking in London alongside counterparts from Italy, Japan and Canada, the Defence Secretary said: “My focus is on maximising our deterrence and ensuring that, should deterrence fail, we’re ready to fight and win alongside allies.
“That means reindustrialisation and building back up our production capacity, so we can give our armed forces the kit they need, as well as building and buying British, so that we deliver good jobs in communities in every part of our country.
“It also means pushing the frontier of defence innovation, exactly as we are doing today, and it means keeping our people at the heart of defence.”
He was speaking as Canada joined the UK-Italy-Japan Global Combat Air Programme (Gcap) as an observer nation.
Civil servants offered relocation packages to join No 10 North, reports say
14:19 , Nicole Wootton-CaneCivil servants based in London have been offered relocation packages to join No 10 North in Manchester, according to reports.
It comes after new prime minister Andy Burnham promised a northern hub for his government as one of his early pledges.
The BBC reports that the Northern branch of Downing Street will be overseen by cabinet minister and ally of Mr Burnham, Louise Haigh.
In pictures: New Cabinet gathers at Downing Street
14:01 , Nicole Wootton-Cane
In depth: Why small boat crossings to the UK and Europe are falling
13:43 , Harriette BoucherHome affairs correspondent Holly Bancroft writes:
Small boat crossings to the UK have almost halved, while irregular crossings to Europe are down almost 40 per cent so far this year, The Independent can reveal.
Analysis of Home Office data shows 12,469 people had arrived in the UK on small boats by 10 July this year – down 43 per cent from 2025, when 21,690 people had made the perilous journey across the English Channel in the same period.
There have now been nine consecutive days of no arrivals from 11-19 July, the latest government figures show.
While migration experts are clear that numbers are falling, it is hard to know definitively why this is.
EU border officials have pointed to partnerships in north Africa stemming the number of onward journeys, but experts caution that these pacts come with a deadly cost.
Nearly 1,300 people have lost their lives in the Mediterranean so far this year, according to the International Organisation for Migration (IOM).
Here, The Independent examines how many people are travelling on migration routes into Europe, and onwards to the UK, and why this might be:
Burnham promises to improve relations between civil service and ministers
13:41 , Harriette BoucherAndy Burnham has told his first cabinet meeting that he will improve the relationship between ministers and civil servants.
The prime minister said the two points on the agenda for the gathering were the “mission purpose of this government and standards”.
“The two are linked because we will only deliver for people and make hope feel real for people if we are pulling ourselves together in the same direction and we have a really positive working relationship, a sense of one team.”
He said he had spoken to cabinet secretary Dame Antonia Romeo, who was sitting beside him, about wanting to “set the tone at the top in relation to our relationship with our colleagues in the civil service,” and “making that feel like it’s a one-team approach… respecting each other”.
Larry, chief mouser to No 10, hard at work during Burnham's first cabinet meeting
13:39 , Harriette Boucher
Farage continues demands for general election
13:36 , Harriette BoucherNigel Farage is continuing his demand for a general election following Keir Starmer’s departure.
He has labelled Andy Burnham’s rise to prime minister as a “coup”, saying nobody voted for him and he “has no mandate”.
Reform has launched a petition, which calls for an election.
“Burnham said he’s ‘bringing forward the biggest changes in the last 40 years’,” it says.
“But who voted for this? Nobody. Andy Burnham has no mandate.”
Analysis: Andy Burnham’s cabinet changes open door to rethink on Brexit
13:29 , Harriette BoucherThe appointment of Hamish Falconer to lead the Brexit reset talks suggests Andy Burnham may end up reconsidering Keir Starmer’s red lines, political editor David Maddox writes:
Andy Burnham’s cabinet changes open door to rethink on Brexit
Burnham promises to show how he will pay for his policies amid criticism
13:19 , Harriette BoucherAndy Burnham has promised to show how his government intends to pay for his policies following criticism from Darren Jones.
The sacked minister said the prime minister’s plan to remove VAT from household electricity bills was “unfunded” and called on Burnham to explain how he intends to fund the plans.
In remarks to his cabinet in front of the media before the private meeting, Burnham told his Cabinet “we will seek to do more” with plans to be set out “over the coming days”.
“But always we will show how we are going to pay for it, what we are reprioritising. That will be a theme that we will always come back to.”
Watch: Cabinet ministers leave St James’s Palace after Privy Council meeting
13:01 , Harriette BoucherBurnham tells ministers they need to 'take pressure off people's shoulders'
12:59 , Harriette BoucherAndy Burnham has told the first meeting of his new cabinet that they needed to examine “all possible ways” to help families struggling with high costs.
After arriving to applause, the prime minister told his new-look top team in Downing Street: “What can we do just to take that little bit of pressure off people’s shoulders, just to give them that little extra sense that help is coming so that they can have that bit of hope that things are getting better.
“And that’s the mission that we’ve got to set ourselves together.”
He asked his colleagues to look into what their department could do to ease cost-of-living pressures, “big and small”.
“We need to be a cost of living government, getting that cost of living down, looking at all possible ways of doing that.”
Mr Burnham sat opposite his new chancellor John Healey, and was flanked by cabinet secretary Dame Antonia Romeo and education secretary Lucy Powell.
Burnham tells cabinet to give Britons a 'sense that help is coming'
12:55 , Harriette BoucherAndy Burnham has told the first meeting of his cabinet that the government needs to give people a “sense that help is coming”.
He also told the newly appointed ministers that “we need to be a cost of living government”.
It comes as the new prime minister faces backlash over his first policy announcement to remove VAT from household electricity bills.
Darren Jones, who was ousted from government, criticised the plans for being “unfunded” and urged Burnham to explain how it is being financed.
Ed Miliband arrives for first cabinet meeting as foreign secretary
12:48 , Harriette BoucherNandy and Kinnock are last to arrive at No 10
12:42 , Harriette BoucherLisa Nandy arrived at Downing Street at 12.28pm, two minutes before Andy Burnham’s first cabinet meeting.
The culture secretary was followed by Stephen Kinnock, who cut it close by arriving at 12.30pm.
He delayed himself by going through security checks, which are similar to those at the airport and is meant for journalists.
Farage repeats call for general election
12:31 , Athena StavrouNigel Farage has called once again for Andy Burnham to call a general election at the outset of his premiership.
The Reform UK leader claimed the new prime minister “has no mandate whatsoever” to bring forward what he has called “biggest changes in the last 40 years”.
“He didn't stand on the 2024 general election manifesto,” he said at a rally in Norfolk.
“You cannot make the biggest change in British politics in 40 years without a mandate from the British people, and it will be only decent, right, and proper to call a general election on that issue and to do it now.”
Miliband arrives for first cabinet meeting as foreign secretary
12:29 , Harriette Boucher
Cooper and McFadden arrive for first cabinet meeting
12:28 , Harriette BoucherLeader of the Commons Sir Alan Campbell has arrived at No 10 shortly before Emma Reynolds.
Hamish Falconer, the minister for intergovernmental relations and Shabana Mahmood, the home secretary, were the next to arrive, followed by Ellie Reeves, the new Attorney General.
Shortly after Yvette Cooper, the new health secretary arrived, smiling and telling reporters “good afternoon”.
Pat McFadden, the work and pensions secretary was next to arrive, also ignoring the question “has the chancellor got his numbers wrong?” from journalists.
More ministers enter Downing Street
12:25 , Harriette BoucherSeveral more ministers have been seen entering Downing Street for Andy Burnham’s first cabinet meeting.
Chief whip Anneliese Midgley was seen, along with Dame Angela Eagle, the new Environmental Secretary.
Jonathan Reynolds, the business and trade Secretary arrived with AI Minister Kanishka Narayan and Justice secretary Alex Norris.
The new chancellor John Healey was next to arrive, he too ignored questions about how he would fund the removal of VAT from electricity bills.
Bridget Phillipson, who was swapped from education secretary to equalities minister was next to arrive.
Ministers ignore questions electricity bills VAT cut
12:17 , Harriette BoucherMinisters arriving at Downing Street for a cabinet meeting have ignored questions from journalists regarding the electricity bills VAT cuts.
Lucy Powell and Miatta Fahnbulleh arrived first and Wes Streeting and Chris Bryant followed together.
Angela Rayner then arrived ahead of the 12.30pm meeting.
Rayner heads to Burnham's first cabinet meeting after being reappointed
12:13 , Harriette Boucher
Energy secretary Miatta Fahnbulleh arrives at No 10
12:12 , Harriette Boucher
Lucy Powell and Matthew Pennycook arrive for first cabinet meeting
12:11 , Harriette Boucher
Ministers arrive at No 10 for first Burnham Cabinet meeting
12:10 , Political Journalist Athena StavrouAndy Burnham’s newly appointed top team have started to arrive in Downing Street ahead of the first Cabinet meeting of his government.
Lucy Powell gave a thumbs up as she entered No 10 when asked if she was pleased to be education secretary.
Other arrivals included defence secretary Wes Streeting and housing minister Angela Rayner, who have both returned to government after resigning under Sir Keir Starmer.
Healey leaves privy council meeting
12:08 , Harriette Boucher
Charities welcome Burnham’s vow to end rough sleeping but warn he cannot ignore ‘hidden homelessness’ crisis
12:03 , Harriette BoucherFin Gray writes:
Homelessness charities have welcomed Andy Burnham’s vow to end rough sleeping but warned that the new prime minister cannot afford to ignore the growing ‘hidden homelessness’ crisis in the UK.
Speaking outside Downing Street for the first time as prime minister, Andy Burnham said that his first instruction to his government would be to “end rough sleeping” and that he will put “the care of people at the heart of everything I do.”
The prime minister added: “For too long, we’ve been told that ending rough sleeping will take decades or even that it’s impossible. I’m not having that. This is something a government can fix if it chooses to.
“We’ll get to work immediately, bringing together national and local government with the investment needed to get it done.”
The latest annual national statistics, published in February, showed an estimated 4,793 people were sleeping rough on a single night in autumn 2025 in England, a new record high, marking the fourth annual increase in a row.
Homelessness charities welcome Burnham’s vow to end rough sleeping
Defence shares get £4bn boost after John Healey confirmed as chancellor
11:45 , Nicole Wootton-CaneBritain's biggest defence companies have seen a £4bn boost to their value since the surprise appointment of John Healey as chancellor.
Investors appeared to have concluded that the former defence secretary, who quit Sir Keir Starmer’s government claiming ministers had failed to provide enough money to keep Britain safe, is likely to increase military spending in Andy Burnham's government.
London's defence sector outperformed the wider European market as traders welcomed Mr Burnham's decision to appoint him to the Treasury, seeing it as a signal that the new government could loosen the purse strings to bolster Britain's armed forces.
You can read more below:
Defence shares get £4bn boost after John Healey confirmed as chancellor
Watch: Starmer says goodbye to No 10 with bizarre TikTok montage
11:30 , Nicole Wootton-CaneBurnham set to slash business rates for hospitality, reports suggest
11:21 , Nicole Wootton-CaneAndy Burnham will slash business rates for the hospitality by 20 per cent within days, reports suggest.
The new prime minister, who worked closely with Manchester’s former nighttime economy tsar Sacha Lord while in his former role, is expected to make the move to ease pressure on hospitality businesses, HuffPostUK reports.
It comes as Mr Burnham unveils a policy blitz during his first few days in office.
Andy Burnham’s in-tray: All the pressing issues the new PM will face, from taxes to Trump
11:15 , Nicole Wootton-CaneWith Andy Burnham finally in No 10, the prime minister will have no shortage of issues to tackle.
During his campaign trail and since returning to parliament, the new Labour leader has delivered several speeches laying out his policy intentions.
In his first speech as prime minister, Mr Burnham promised to give people “breathing room” against the rising cost of living and urge the country to be honest about the challenges it faces and call for “reflection and resolution”.
However, a lot of the challenges that Sir Keir Starmer faced during his premiership remain unresolved, and Mr Burnham will have to address them during his first few days in office.
Here are some of the key issues the former Manchester mayor will face:
Andy Burnham’s in-tray: The pressing issues the new PM will face, from taxes to Trump
Analysis: Wes Streeting’s lack of military experience as defence secretary is normal
11:05 , Nicole Wootton-CaneThe Independent’s political editor David Maddox reports:
There is a lot of criticism of Andy Burnham for replacing Dan Jarvis with Wes Streeting as defence secretary because of their different backgrounds.
Mr Jarvis had a distinguished military career as a commander of the Paratroopers while Mr Streeting was a student politician and then a professional politician. But is it wrong to have a defence secretary with no military experience?
The truth is that Mr Jarvis was an exception not the rule. Since 1964 only he, Ben Wallace, Denis Healey and Lord Carrington have been defence secretaries having previously served in the military. Penny Mordaunt was a Royal Navy reservist.
A long list of others including John Healey, Grant Shapps, Philip Hammond, Michael Fallon, Liam Fox and many others did not have military backgrounds.
This is even less surprising when you look at other departments. There has never been a health secretary who was a doctor apart from the very first health minister in 1921 Christopher Addison.
Only two education secretaries were previously teachers - Estelle Morris and Gillian Shepherd. David Blunkett was a college lecturer.
The new justice secretary Alex Norris is not a lawyer, just like Brandon Lewis, Liz Truss, Michael Gove, David Lidington, Chris Grayling and Ken Clarke.
Jonathan Reynolds is back as business secretary with no previous experience running an actual business. You have to go back to Grant Shapps for any business experience and again he was the exception not the rule.
In the end being an effective minister is about being good at politics and administration, prior experience may be helpful but is certainly not a requirement.
Wealth tax could raise £10bn a year, academics tell Andy Burnham
10:55 , Nicole Wootton-CaneA tax on Britain’s super-wealthy could raise £10 billion a year, according to academics who have called on Andy Burnham to “make tax fairer”.
Economic experts have claimed a 2 per cent charge on households with more than £100m in assets would raise a vast amount and affect less than 1,000 of the wealthiest households in the UK.
Authors of the report, professor of economics at the Paris School of Economics Gabriel Zucman and lecturer in economics and wealth inequality at King’s College London Ben Tippet, said the tax would “raise meaningful revenues and dampen runaway inequality”.
You can read more below:
Wealth tax could raise £10bn a year, academics tell Andy Burnham
White House 'deeply concerned' about Miliband's appointment, reports suggest
10:44 , Nicole Wootton-CaneThe White House is “deeply concerned” about Ed Miliband’s appointment as foreign secretary and warned the new prime minister against the change, it has been reported.
Donald Trump’s cabinet reportedly told Mr Burnham they would find it difficult to work with him in any international-facing role.
Mr Miliband supports a number of green energy projects that are not favoured by Mr Trump, according to The Telegraph.
He has been reluctant to drill the North Sea, something the president strongly supports.
Recap: Burnham invites Trump to Manchester for G20 hours after becoming prime minister
10:35 , Nicole Wootton-CaneAndy Burnham is expected to meet with Donald Trump in Manchester next year for the G20 Summit, it has emerged, after the pair spoke for the first time just minutes after the new prime minister entered No 10.
Mr Burnham reportedly extended the invite to the US president in one of his first calls since entering Downing Street.
While White House sources offered no details of the phone call, new oil and gas drilling in the North Sea is understood to also have been discussed.
You can read more below:
Andy Burnham invites Trump to Manchester hours after entering No 10
Burnham tells devolved nation heads he is 'focused on practical measures'
10:20 , Nicole Wootton-CaneAndy Burnham has told the leaders of Scotland, Wales and Northern Ireland he is “focused on practical measures, not constitutional changes like further referendums”.
A Downing Street spokesperson said Mr Burnham on Tuesday had calls with Scottish First Minister John Swinney, Welsh First Minister Rhun ap Iorwerth, and Michelle O’Neill and Emma Little-Pengelly, the First Minister and Deputy First Minister of Northern Ireland.
The spokesperson added: “The prime minister said he was serious about creating a new politics – rooted in finding common ground based on collaborative, practical and pragmatic relations with the heads of the devolved governments.
“Working in partnership, the prime minister said together they could drive deeper devolution to all parts of the United Kingdom to get growth going.
“The prime minister added he was focused on practical measures, not constitutional changes like further referendums, to give families more breathing room by helping them with the cost of living, which he had done today by helping millions of households with their energy bills.”
Comment: Andy Burnham is the first truly Gen X prime minister – here’s why that matters
10:15 , Nicole Wootton-CaneHis dad’s got dementia; his daughter has just graduated into a debt-laden landscape where there are few jobs. Eleanor Mills, who started out her career alongside Andy Burnham and is the same age, says, here is a man who knows the pain of a generation and has what it takes to do something about it.
Andy Burnham is the first truly Gen X prime minister – here’s why that matters
Burnham Cabinet sees record number of women appointed
10:00 , Nicole Wootton-CaneAndy Burnham has appointed a record number of women to the Cabinet, with the number of females outnumbering males for the first time.
Of the 23 full members of the Cabinet, including the prime minister, 12 are women and 11 are men.
This is up from 10 women and 13 men in Sir Keir Starmer’s final Cabinet.
The previous record was 11 women out of 22 full members, set by Sir Keir’s first Cabinet in July 2024.
Of the 28 ministers eligible to attend Mr Burnham’s Cabinet – 23 full members and five others – 50 per cent (14) are women.
This surpasses the previous record of 48 per cent of all attendees in Sir Keir’s first Cabinet.
Who are the key winners and losers of Andy Burnham’s reshuffle?
09:51 , Nicole Wootton-CaneThe prime minister has conducted a brutal purge of Starmer loyalists and made some shock appointments to key government roles. Here, The Independent looks at the main winners and losers of Andy Burnham’s reshuffle.
Who are the key winners and losers of Andy Burnham’s reshuffle?
What does Burnham’s VAT cut mean for your energy bills?
09:30 , Nicole Wootton-CaneAndy Burnham has scrapped VAT on household electricity bills from October in his first major measure to tackle the cost of living crisis since becoming prime minister.
The government said the cut will save the typical household £45 a year from 1 October by cutting VAT on domestic electricity from five per cent to zero.
Unveiling the policy on his first full day in office, Mr Burnham said the tax cut would give families “breathing space” after years of pressure from rising living costs.
But what does this mean for your energy bills? We take a look below:
What does Burnham’s VAT cut mean for your energy bills?
Former British Army head calls Streeting appointment 'disappointing'
09:20 , Nicole Wootton-CaneA former British Army head has said he is “disappointed” that Wes Streeting has been made defence secretary.
Lord Dannatt told Times Radio: “A new defence secretary has a lot to learn, the defence portfolio is one of the more complicated ones in government and as far as I’m aware Wes Streeting has got no background in defence, no background in the military.
“So he’s going to have to do an awful lot of listening and learning over the next few days and weeks before he can start to make a contribution.”
He added there are other people who have more experience in defence, naming Dan Jarvis, who recently took over from John Healey.
“But if Wes Streeting is prepared to listen, to learn, then there’s no reason why, over time, he can’t be an effective defence secretary – but he’s got to remember that the man in Number 11 actually knows the stuff about defence, and there’s no point trying to pull the wool over his eyes.”
The true cost of Burnham’s tax unfreeze - for taxpayers and the Treasury
09:10 , Nicole Wootton-CaneAndy Burnham assumed his role as prime minister on Monday and one of his top priorities is tackling the cost of living crisis.
Keir Starmer’s replacement told The Times he wanted to bring a “tangible” improvement to households, saying “the thing I heard the most on the doorsteps” when canvassing voters in Makerfield was the tax-free personal allowance threshold. While that’s not yet a confirmed policy, it’s clearly one of the options on the table after the new prime minister also removed VAT from household electricity bills.
The personal allowance - the amount of income a person can receive annually before starting to pay tax on earnings - has been frozen at £12,570 for five years. Tax band thresholds have similarly been stuck at the same level rather than rising as wages grow larger.
By the process called fiscal drag, that has meant more people being pulled into either paying tax for the first time or paying a higher tax bracket, as wages naturally rise along with inflation.
But if Mr Burnham was to lift the personal allowance, it would give a small amount of breathing space to basic rate taxpayers in particular.
The Independent’s business and money editor Karl Matchett takes a look below:
The true cost of Burnham’s tax unfreeze - for taxpayers and the Treasury
Healey appointment makes him 'poacher turned gamekeeper' over defence row, former British Army head says
09:04 , Nicole Wootton-CaneA former British Army head has said appointing John Healey to Chancellor is “a masterstroke” and makes him “poacher turned gamekeeper”.
Lord Dannatt told Times Radio: “John Healey, as we all know, resigned not that long ago, having said that the previous prime minister was unable to produce the funding that defence needed – and the previous chancellor was unwilling – so now he is the one behind the desk in Number 11, and has really got to answer his own question.
“Now, it won’t be an easy question to answer, but there’s no one that knows better than John Healey just what defence needs, and I think he’ll give it his best shot possible to try and find the money that he knows the nation needs to keep this country safe, and that we play our collective part in the collective security of Europe.
“So in a sense it’s very much a poacher turned gamekeeper, and physician heal thyself.”
He also said it is “not entirely by happenstance” that a Russian warship carried out a live fire artillery exercise off Plymouth on Monday, the same day the UK got a new prime minister.
“This is an indication from the Kremlin that ‘we’re here and we’re powerful, we’re strong, and what are you going to do about it?’ So it’s a challenge.”
Minister defends unfunded VAT cut on energy bills
09:00 , Nicole Wootton-CaneThe Independent’s political reporter Athena Stavrou reports:
A government minister has been forced to defend the sums behind Andy Burnham’s first major economic policy, after one of his sacked colleagues claimed it was unfunded.
Former chief secretary to the prime minister Darren Jones said on Tuesday morning that the Digital ID programme, which Burnham has cancelled in order to pay for his VAT cut on energy bills, is in fact unfunded.
But newly appointed business secretary Jonathan Reynolds still insisted the move would remove a fiscal “pressure” from the government, allowing it to carry out the reforms.
“The allocation for digital ID was £1.8 billion over three years. That is scored by the OBR, so it's in the scorecard,” he told BBC Radio 4. “It's a pressure that is within the system that is being removed in order to make this decision on reducing energy bills for people. So it's a straightforward release of one pressure in order to have this decision made.”
Arguing that the money for Digital ID “would have to have been found”, he added: “They are part of the scorecard. They are part of the government's pressure. It is a legitimate decision to remove that pressure and instead use the allocation of resources.”
VAT cut 'good' first step but people 'won't feel much benefit', Martin Lewis says
08:50 , Nicole Wootton-CaneMoney saving expert Martin Lewis has said the government’s announcement it will cut VAT from electricity bills is a “good” first step but that “in practice people won't feel much benefit”.
In a post on X, he said the energy price cap rise on 1 October is likely to mean any savings made are quickly eaten up.
“Ultimately though it does mean people will pay less than they would've done without this,” he wrote. “Yet it is going to need a lot more policy cost reductions, likely at the budget, for things to feel materially cheaper.”
Shadow defence secretary says new policies have 'got to last more than a few minutes' of scrutiny
08:40 , Nicole Wootton-CaneShadow defence secretary James Cartlidge has said new policies have “got to last more than a few minutes” of scrutiny, during a discussion on the Prime Minister’s announcement that new VAT cuts will be partly funded by scrapping Sir Keir Starmer’s digital ID project.
Mr Cartlidge’s comments came after former chief secretary to the prime minister Darren Jones posted on X that it is “good news that VAT will be cut on electricity bills” but “the DigitalID program was unfunded”.
The shadow defence secretary told Times Radio that the OBR (Office for Budget Responsibility) also said last year that the digital ID card scheme has not been funded.
He said: “They (the OBR) literally said that, so you can’t fund a tax cut with… with savings from a programme that itself wasn’t funded.
“So you know, big question here, backed up by someone who – as you can rightly say – was only recently was in the heart of government under Labour – so it’s a fairly extraordinary position… I certainly agree with the new prime minister that cost of living is a big issue, I think we all agree with that, it’s still the number one thing that comes up on the doorstep with my constituents.
“But if you’re going to have policies to deal with it, they’ve got to last more than a few minutes in terms of scrutiny, to be honest.”
Sacked Cabinet minister disputes funding claims for Burnham’s first major policy
08:30 , Nicole Wootton-CaneThe Independent’s political reporter Athena Stavrou reports:
A Starmer loyalist who was sacked from a senior Cabinet role by Andy Burnham has disputed the new prime minister’s funding claims underpinning his first major policy.
The Burnham government have said a fresh tax cut to remove VAT from domestic electricity bills would be funded from cancelling the Digital ID programme.
But shortly after the policy was announced, former Chief Secretary to the prime minister Darren Jones publicly claimed the policy was not funded.
He wrote on X: “Good news that VAT will be cut on electricity bills. It’s a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lower.
“But the DigitalID program was unfunded. The government will have to set out how it will pay for its new policies at the budget.”
He now becomes the first Labour backbencher to publicly criticise the Burnham government, something the former mayor may have to get used to.
Good news that VAT will be cut on electricity bills. It’s a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lower.
— Darren Jones MP (@darrenpjones) July 21, 2026
But the DigitalID program was unfunded.
The government will have to set out how it will pay for its new… https://t.co/3iqrTFf1Nv
US politics are ‘robust’ and Miliband’s appointment won’t be an issue, minister says
08:25 , Nicole Wootton-CaneThe Independent’s political reporter Athena Stavrou reports:
A government minister has insisted Ed Miliband’s appointment as foreign secretary won’t negatively impact Britain’s relationship with the US, despite having vocally criticised Donald Trump in the past.
Mr Miliband, who will have to work closely with the US administration, previously called the US president a “racist, misogynistic, self-confessed groper”.
But asked if this could be an issue in his new role, business secretary Jonathan Reynolds told Sky News: “No, I think as ever that this government will work with allies across the world.
“I know from my experience last time on some of the trade deal negotiations, it can be a robust exchange with our US friends and allies. But they will stand up for what they believe their national interest is, and they will do the same.”
He added: “Well, sometimes I reflect on things that members of the US administration have themselves said about different people in US politics. So they are quite a robust bunch over there in the US and I know they'll have their priorities. We've got ours.
“Can we work together on lots of things in mutual interest in both countries? Absolutely, we can.”
Cabinet minister hails ‘tremendous’ VAT cut on energy bills
08:20 , Nicole Wootton-CaneThe Independent’s political reporter Athena Stavrou reports:
One of Andy Burnham’s newly appointed government minister’s has hailed his decision to cut Vat on energy bills as “a tremendous announcement for the first day of the new cabinet”.
Business secretary Jonathan Reynolds said the policy is a “clear statement of intent” from the Burnham government on how it will deal with the cost of living crisis.
“It’s about the government's priorities,” he told Sky News. “It's about showing we understand people need some breathing space for pressure that they are under, and being able to make an announcement like this, I think, is a real statement.”
Burnham’s new business secretary ‘glad to be back’
08:14 , Nicole Wootton-CaneThe Independent’s political reporter Athena Stavrou reports:
Andy Burnham’s newly appointed business secretary Jonathan Reynolds is the first minister to be up on the morning broadcast round.
Mr Reynolds, who first served as Starmer’s business secretary before being moved to the role as chief whip, said he was “very glad to be back” in the role.
Asked if he did not enjoy the role of chief whip, he said: “It's an important job. It's a privilege to serve in any capacity.“
But look, I think for the kind of things that I think make the biggest difference to the country - I still get stopped in the street by people who work for British Steel, or what we did with Harland and Wolff, or the trade deal.
“So I think the chance to serve in that it's a privilege in any capacity. But this is what I love doing.”
