Burnham tells cabinet to tackle living costs at first meeting

The announcement on energy bills, which will see VAT on household electricity reduced from 5% to zero in England, Wales and Scotland, is estimated to save the typical household about £45 a year.

It will not apply in Northern Ireland due to post-Brexit rules agreed by the previous Conservative government, with ministers at Stormont instead offered extra money from the Treasury to use on cost of living measures.

The Conservatives and Reform UK have both previously called for the measure, with Nigel Farage calling it a benefit of Brexit but insisting it would not “address the real issue of the cost of living” and taking aim at green levies on bills.

Meanwhile, further details have been confirmed of Burnham’s plan for a new Downing Street unit in Manchester, known as No 10 North.

The government says the unit, expected to be initially set up in a building currently housing intelligence service GCHQ, will be given control of aspects of local economic growth and devolution strategy.

Alongside this, a new Office for the Prime Minister and the Cabinet will be created to ensure departments remain focused on “top strategic priorities”, according to a statement announcing the changes, external.

Civil servants working in London have been offered relocation packages to encourage them to move north, it is understood, with Downing Street saying Burnham would try to work from No 10 North “at least one day a week”.

Additional reporting by Harry Farley.