Andy Burnham has announced an £850m tax cut on electricity bills as his first major policy move after becoming prime minister, telling his newly formed cabinet that the government must be a "cost-of-living government". He said ministers needed to examine "all possible ways" to help households struggling with high living costs, framing the measure as an early signal of his government's priorities.

The announcement came during the first meeting of Burnham's cabinet, with the electricity tax reduction presented as a direct response to pressure on family budgets. The report does not detail how the cut would be implemented or when it would take effect, but names John Healey among the cabinet figures involved.