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In a significant move to address the rising cost of living, Prime Minister Andy Burnham has announced a reduction in VAT on electricity bills. This policy change is expected to save households approximately £45 annually. The announcement marks Burnham's first major policy initiative since taking office, signalling a shift from the previous government's approach.
Burnham, who has also made substantial changes to his Cabinet, aims to implement a series of reforms to improve public welfare. In addition to the VAT cut, he has pledged to allocate £340 million over three years to combat homelessness in England, drawing on successful strategies he previously employed in Greater Manchester. This funding is intended to enhance support for those experiencing rough sleeping, with Burnham expressing a commitment to getting people off the streets as quickly as possible.
While the VAT reduction has been welcomed by many as a necessary step to alleviate financial pressure on families, critics have raised concerns about the effectiveness of Burnham's homelessness initiatives, citing previous failures during his tenure as mayor.
As the government prepares to roll out these policies, the focus remains on how they will impact everyday life for UK citizens facing economic challenges.
Source: www.theguardian.com – https://www.theguardian.com/politics/live/2026/jul/21/andy-burnham-pm-labour-energy-bills-cost-of-living-cabinet-latest-news-updates