New Manchester prime minister Andy Burnham has cut VAT on household electricity bills as one of his first measures to tackle the cost-of-living crisis, a move welcomed by the TUC but described by campaigners as helpful rather than a solution. The announcement came alongside fresh ONS figures showing UK unemployment held steady at 4.9% in May, in what economists called a "stale" labour market, adding to pressure on the new government to do more for households.

Job vacancies fell to 712,000 in the three months to May, roughly half the 2022 level, as employers held back on hiring. Private sector earnings growth slowed to 2.9%, leaving overall pay growth including bonuses at 4.3%, below the 4.5% economists had forecast. The TUC's Paul Nowak said Burnham should go further by raising up to £60bn over four years through higher taxes on banks to cut bills more deeply, citing rising costs linked to the conflict involving Iran. Separately, the article notes UK government borrowing in June came in lower than expected, though weak wage growth and a tighter fiscal position are seen as limiting Burnham's room for further support without breaching fiscal rules.