Andy Burnham has unveiled his first cost-of-living measure as prime minister, announcing that VAT will be removed from domestic electricity bills from 1 October. The tax cut, one of his first acts in office, is intended to give struggling households "breathing space" and follows his pledge on entering Downing Street to tackle the cost of living and restore public trust in government.

The change is expected to lower the annual Ofgem price cap by around £45, with energy suppliers anticipated to pass the saving on to customers. Newly appointed chancellor John Healey said the measure would be funded this year by scrapping the Digital ID programme, describing it as a way to offer families "breathing room" and reassurance ahead of winter. The announcement came a day after Burnham's first speech outside No 10, in which he pledged to "bring back hope" to Britain.