- Andy Burnham urged his new cabinet to examine 'all possible ways' to tackle the cost of living crisis.
- The White House is “deeply concerned” about the appointment, warning that Trump has not forgotten Miliband's past scathing remarks.
- Miliband previously called Trump “a racist, misogynistic, self-confessed groper” and has clashed over net zero.
- Burnham announced that VAT would be removed from electricity bills from 1 October, reducing the electricity price cap by £45 at a total cost of £850m next year.
- The funding of the VAT cut was questioned: Darren Jones said the money for the DigitalID scheme had not yet been identified, and Downing Street said the tax cut was funded for the next financial year but money would have to be found from future departmental budgets, suggesting spending cuts.
- Measures include reducing the national bus fare cap by a third, from £3 to £2, with the prime minister set to announce the move on Wednesday.
- Burnham plans to accelerate the timetable for a national care service and is working on a major social care announcement, including bringing forward the review by Louise Casey from 2028 to as soon as next year.
- Burnham told his cabinet his would be a 'cost of living government' and asked departments to look into both 'big and small' measures to ease pressures.
- No 10 has ruled out using defence bonds to pay for higher military spending.
- Burnham has abandoned a nascent plan to raise the threshold at which workers start paying income tax, which had been frozen for several years.
- An ally warned “Trump doesn’t forget” and that Miliband has “serious diplomatic repair to undertake” in the US.
- A consultant said the appointment is “going down like a lead balloon” and that Miliband is seen as an “unreasonable ‘nut zero’ extremist” in Washington.
- Steve Bannon called Miliband a “red diaper” baby and said the appointment is “very injurious to the ‘special relationship’”, criticising PM Burnham for ignoring warnings.
Andy Burnham is under pressure to justify his policy pledges as he calls on his cabinet to explore all avenues to combat the cost of living crisis. He announced a VAT cut on electricity bills starting 1 October, which will reduce the price cap by £45 at a cost of £850m next year.1417
However, questions arose regarding the funding for this initiative, particularly after Darren Jones, the former minister overseeing the digital ID scheme, stated that the necessary funds had not been identified. Downing Street confirmed that while the tax cut is funded for the next financial year, future budgets may require cuts in spending.56
In addition to the VAT cut, Burnham is expected to announce a reduction in the national bus fare cap from £3 to £2 and plans to expedite the rollout of a national care service, which could incur further costs before the upcoming election.78910
Meanwhile, Trump has expressed anger over Ed Miliband's appointment as foreign secretary, citing past criticisms Miliband made about him. A source close to the president indicated that there is “genuine anger” regarding the appointment, with Miliband viewed unfavorably in Washington due to his previous remarks and policies.
Steve Bannon criticized the appointment, suggesting it could harm the “special relationship” between the UK and the US, while Miliband's past as a “self-described socialist” has raised concerns among US officials.
“Burnham will remove VAT from electricity bills from 1 October, cutting the price cap by £45 at a cost of £850m next year, and reduce the bus fare cap from £3 to £2. The White House is 'deeply concerned' about Miliband's appointment, with an ally warning Trump 'doesn't forget'.”
The Guardian
