Good Morning Britain was interrupted just minutes into its broadcast on Tuesday morning to deliver breaking news from the new Prime Minister Andy Burnham. The ITV breakfast show halted its regular programming to share an update from Downing Street regarding a major change to household electricity bills.
Breaking News from Downing Street
Political Correspondent Louisa Jameson, reporting from outside Downing Street, told the studio she had received the update "in the last minute or so." She revealed that Andy Burnham has announced the removal of VAT from electricity bills, a move aimed at providing immediate financial relief to millions of households.
"Andy Burnham is going to basically cut our energy bills," Jameson said. "He's going to take VAT off electricity bills specifically. The email from the government says he is taking immediate action to give millions of households breathing space this winter."
Funding and Impact
The policy will be funded by scrapping the digital ID scheme, an initiative introduced by former Prime Minister Keir Starmer. Burnham had previously stated he would not proceed with the scheme. The removal of VAT is expected to save the average household approximately £45 per year on their electricity bill, starting in October. This comes on top of the £150 removed from bills in the last budget.
Jameson emphasized that Burnham sees this as a first step. "It is the first thing that Andy Burnham has announced as part of what he said is an attempt to give people something they can feel and feel quickly," she said. "He has said that it won't take all the pressure off. It won't fix everything. But he wants to give people the direction of travel, as he puts it, and the idea that this is a government that is going to help people."
Political Context
Jameson also offered analysis on Burnham's motivations, suggesting the move is partly to differentiate himself from his predecessor. "I think that is a big part of wanting to be different from Keir Starmer in both what he does and how he puts it," she said. "Don't forget, Keir Starmer came into office saying things were going to get worse before they got better, and then the first thing he did was not a giveaway, but to take away that winter fuel allowance."
Questions over Affordability
While the announcement was welcomed, questions remain about how the government will fund future promises. Jameson noted: "One of the big questions, though, with anything like this, with any cost of living giveaway, any help for people, is how they are going to pay for it. They've obviously explained this time that it's going to come from the digital ID scheme. But they've also said that any other promises will be fully funded, and that ultimately means either finding the spending elsewhere or cutting spending from elsewhere, or raising taxes."
