The Japan Times - New UK PM Burnham announces tax cut after cabinet shakeup

EUR -
AED 4.095701
AFN 72.480008
ALL 90.882712
AMD 401.805034
ANG 1.995737
AOA 1023.635334
ARS 1721.721299
AUD 1.622157
AWG 2.007127
AZN 1.900047
BAM 1.951697
BBD 2.245579
BDT 138.86805
BGN 1.948955
BHD 0.420772
BIF 3356.362879
BMD 1.115071
BND 1.428792
BOB 13.374482
BRL 6.138357
BSD 1.114956
BTN 104.659009
BWP 15.359741
BYN 3.339105
BYR 21855.38619
BZD 2.242466
CAD 1.573756
CDF 2586.964483
CHF 0.914881
CLF 0.027698
CLP 1090.127033
CNY 7.444774
CNH 7.440667
COP 3625.685911
CRC 505.646021
CUC 1.115071
CUP 26.76054
CVE 110.842372
CZK 24.346956
DJF 198.170808
DKK 7.480457
DOP 67.740985
DZD 152.081196
EGP 59.957114
ERN 16.726061
ETB 179.75372
FJD 2.514764
FKP 0.833961
GBP 0.834821
GEL 2.893653
GGP 0.833961
GHS 13.029646
GIP 0.833961
GMD 83.077063
GNF 9876.743229
GTQ 8.520088
GYD 233.749058
HKD 8.744552
HNL 30.190584
HRK 7.547925
HTG 146.132606
HUF 363.51345
IDR 20192.258205
ILS 3.552538
IMP 0.833961
INR 104.869336
IQD 1688.217076
IRR 2108992.359359
ISK 136.919964
JEP 0.833961
JMD 176.947992
JOD 0.790629
JPY 176.744329
KES 144.903869
KGS 97.510486
KHR 4549.488945
KMF 492.86165
KPW 1003.563608
KRW 1520.737678
KWD 0.346765
KYD 0.929309
KZT 499.776184
LAK 25094.667032
LBP 99854.583719
LKR 370.763872
LRD 189.90075
LSL 18.465996
LTL 3.292514
LVL 0.674496
LYD 7.170329
MAD 10.880307
MDL 19.93044
MGA 5123.750363
MKD 61.556144
MMK 2341.311039
MNT 4015.078679
MOP 9.000882
MRU 44.882019
MUR 52.442198
MVR 17.176258
MWK 1936.878232
MXN 20.768572
MYR 4.528864
MZN 71.257178
NAD 18.465992
NGN 1502.23485
NIO 40.823159
NOK 10.548462
NPR 167.454215
NZD 2.010586
OMR 0.428348
PAB 1.115031
PEN 3.838635
PGK 5.008941
PHP 70.369926
PKR 308.456482
PLN 4.399568
PYG 6968.50605
QAR 4.062245
RON 5.343646
RSD 117.7359
RUB 91.352798
RWF 1644.729318
SAR 4.18675
SBD 8.974739
SCR 15.631155
SDG 670.719139
SEK 11.033072
SGD 1.430194
SHP 0.835103
SLE 25.591287
SLL 23382.48045
SOS 637.267002
SRD 41.908265
STD 23079.712667
STN 24.8382
SVC 9.75549
SYP 14498.149201
SZL 18.465983
THB 37.411034
TJS 10.285553
TMT 3.902748
TND 3.329048
TOP 2.684822
TRY 55.9111
TTD 7.561104
TWD 36.546782
TZS 2946.578434
UAH 50.509358
UGX 4560.432794
USD 1.115071
UYU 44.855697
UZS 13380.84906
VES 999.456181
VND 28526.296796
VUV 133.25575
WST 3.108617
XAF 655.957
XAG 0.021465
XAU 0.000274244363
XCD 3.013535
XCG 2.009331
XDR 0.788413
XOF 655.957
XPF 119.331742
YER 263.853652
ZAR 18.419263
ZMK 10036.978597
ZMW 22.65679
ZWL 359.052318
SSP 6406.644798
MXV 2.336546
  • RYCEF

    0.1000

    19.81

    +0.5%

  • VOD

    -0.2500

    16.33

    -1.53%

  • CMSC

    -0.2800

    20.12

    -1.39%

  • RBGPF

    -2.0000

    65

    -3.08%

  • RIO

    -0.2500

    94.16

    -0.27%

  • BTI

    -1.2000

    54.85

    -2.19%

  • NGG

    -0.3000

    74.94

    -0.4%

  • GSK

    -0.3500

    49.35

    -0.71%

  • BCE

    -0.4200

    20.14

    -2.09%

  • CMSD

    -0.3400

    19.93

    -1.71%

  • BP

    -0.9100

    43.52

    -2.09%

  • RELX

    0.1700

    33.24

    +0.51%

  • BCC

    -0.6200

    75.97

    -0.82%

  • AZN

    -1.9400

    164.21

    -1.18%

  • JRI

    0.0000

    10.77

    0%

New UK PM Burnham announces tax cut after cabinet shakeup

New UK PM Burnham announces tax cut after cabinet shakeup

New UK Prime Minister Andy Burnham announced a tax cut to ease cost-of-living pressures as he was set to convene his first cabinet meeting on Tuesday.

Text size:

After a day earlier replacing Keir Starmer in Downing Street and purging the government of his predecessor's loyalists, the 56-year-old on Tuesday morning said he was cutting value added tax on consumer electricity bills.

The new business minister Jonathan Reynolds told Sky News this was a "tremendous announcement for the first day of the new cabinet", which was due to meet Tuesday afternoon.

The measure cuts the 5 percent tax from October and will trim about £45 ($61) a year off, and will be initially funded by cancelling a plan to introduce digital IDs.

It came after Burnham promised to "give people some breathing space now, some help with the cost of living".

Burnham pledged to re-industrialise Britain and decentralise power as well as end sleeping rough on the streets after he met King Charles III at Buckingham Palace to become the head of government following Starmer's departure.

The monarch's fourth prime minister since he acceded to the throne in 2022 -- and Britain's seventh in just over a decade -- Burnham said the country needed to show the world it could "regain stability".

Standing outside his new official residence at Number 10, he vowed to create "a new political model" and "build a new economy".

In his first call with US President Donald Trump, Burnham underlined his "commitment to defence and security", a UK government spokesperson said.

Trump said he had a "very good conversation" with Burnham and that the two leaders would meet "in the not too distant future".

Burnham "has got a big job ahead of him, but he will be able to do it and, of course, the U.S.A. will be there to help!" Trump posted on Truth Social, noting they discussed trade, military cooperation and demining the Strait of Hormuz.

To Ukrainian President Volodymyr Zelensky, Burnham reaffirmed Britain's "resolute commitment" to Ukraine in its defence of Russia's invasion, according to Downing Street.

French President Emmanuel Macron sent congratulations, urging Burnham to "give new momentum to the partnership" with the European Union.

Burnham moved swiftly to stamp his authority on the new government by sacking several Starmer loyalists from his cabinet, including Rachel Reeves and former deputy prime minister David Lammy, while moving some ministers to other jobs and promoting allies.

- 'Stronger and fairer' -

Ex-defence secretary John Healey replaced Reeves as finance minister, Ed Miliband became foreign minister and left-wing figurehead Angela Rayner returns to government.

Wes Streeting, who abandoned plans to run against Burnham for the Labour leadership, is now defence minister.

Shabana Mahmood was reappointed interior minister to see through her hardline reforms of Britain's asylum system.

In his brief speech, Burnham said he would "bring forward a new plan for Britain, a 10-year plan", without giving specifics.

Starmer had similarly talked of his intention to lead a "decade of national renewal" before Labour MPs ditched him last month in favour of Burnham, who only returned to parliament four weeks ago.

Burnham also said his first instruction would be a pledge to "end rough sleeping", a measure he attempted to implement as a regional mayor in northern England, although it was not fully successful.

Other announcements included a vague promise to re-industrialise Britain through public procurement and to build more public housing.

He repeated his belief that "in the 1980s Britain took some wrong turns", as he pledged to decentralise power away from Westminster and "put life's essentials back under stronger public control to make them affordable".

Starmer departed Downing Street insisting his two years in office had made Britain "stronger and fairer".

- 'Momentum' -

Starmer leaves multiple challenges for Burnham, including a tepid economy, high government borrowing costs, a ballooning welfare bill and irregular migrants arriving in small boats that have fuelled support for the hard-right Reform UK party.

Unpredictable energy prices due to the US-Iran war and volatile relations with Washington under Trump also threaten to buffet his premiership.

Burnham, an MP between 2001 and 2017, has little room to manoeuvre amid high public debt and strict financial rules requiring him to balance government spending against tax revenue.

Starmer led Labour to a landslide election victory in July 2024 after 14 years of Conservative rule, but his premiership became characterised by scandals, missteps and policy U-turns.

Burnham, the ex-mayor of Greater Manchester nicknamed the "King of the North", was parachuted in by Labour after Starmer resigned, with MPs viewing him as the party's best chance of reining in Reform, led by Nigel Farage.

But his swift "coronation" without a contest as Labour leader and now prime minister, by virtue of Labour's huge parliamentary majority, has raised questions about how he will achieve his aims.

Opposition politicians have questioned his mandate and called for a snap election.

T.Sato--JT