Britain's new Prime Minister Andy Burnham has chaired his first Cabinet meeting, pledging to make the cost of living his government's central priority while signalling a broader effort to restore confidence in Britain's government and strengthen its international standing.
Addressing ministers in London on Tuesday, Burnham said his government must focus every day on measures that ease pressure on households.
"We need to, every day, think, what can we do just to take that little bit of pressure off people's shoulders, just to give them that little extra sense that help is coming," Burnham said.
He said the government's mission was to make people feel that living standards were improving and described his administration as a "cost of living government".
His first major economic measure is the removal of VAT from domestic electricity bills from 1 October. The move is expected to reduce average annual electricity costs by around £45 for households and will be funded through savings from the cancellation of the previous government's £1.8 billion digital ID programme.
Burnham acknowledged that the measure would not solve the wider cost of living crisis but said it demonstrated the government's commitment to providing immediate support.
Burnham's appointment of former defence secretary John Healey as finance minister has attracted attention, with the new government stressing fiscal discipline alongside its spending commitments.
Healey said the energy bill measure would provide support to millions of households while maintaining the government's commitment to responsible public finances.
"It doesn't solve the cost of living, but it does indicate that we're offering a bit of help, we're offering a bit of hope," Healey said.
Markets are closely watching how the government plans to fund future measures after concerns over borrowing and fiscal policy contributed to higher UK bond yields.
Beyond domestic priorities, Burnham's first Cabinet is also expected to focus on Britain's role on the international stage.
The new prime minister has sought to present the UK as a stable and reliable partner, with a continued commitment to NATO, defence co-operation and support for allies.
Wes Streeting has taken over as defence secretary, while Ed Miliband has become foreign secretary, placing two senior Labour figures in key positions as Britain faces major global challenges.
Miliband's appointment comes as conflicts in Ukraine and the Middle East continue to dominate international diplomacy. His role will include shaping Britain's foreign policy towards allies, security partnerships and humanitarian issues.
Burnham's government has also highlighted the composition of its ministerial team, with women holding several senior positions.
Shabana Mahmood remains interior minister, while Yvette Cooper leads the health department and Angela Rayner takes responsibility for housing.
Miatta Fahnbulleh has been appointed energy minister, and Lisa Nandy continues as culture secretary.
The appointments reflect Burnham's attempt to present a broader and more representative government after years of political turbulence in Westminster.
The appointment of Ed Miliband as foreign secretary has already drawn criticism from U.S. President Donald Trump.
Trump has previously clashed with Miliband over climate policy and energy issues, and his return to a senior government role has raised questions about the future tone of UK-U.S. relations.
The new Labour government will seek to maintain close ties with Washington while balancing differences over energy, climate policy and international affairs.
Burnham, the former Mayor of Greater Manchester, who is known as the "King of the North", became Britain's seventh prime minister in a decade.
He has pledged to move quickly to demonstrate that government can deliver tangible improvements for the public.
Alongside tackling domestic pressures, his administration faces the challenge of rebuilding trust at home while maintaining Britain's influence abroad through its defence commitments, alliances and diplomatic engagement.
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