Transport secretary ‘100% sure’ new cap on bus fares in England is fully funded – UK politics live

Earlier this week, Burnham’s new government faced questions about how the removal of VAT on electricity bills would be funded My colleagues Kiran Stacey and Peter Walker take a closer look at the questions on how the government will finance its spending pledges: On his first full day in power, the prime minister faced questions about how he would fund the removal of VAT from electricity bills and an expected uplift in defence spending – an issue that led his new chancellor, John Healey, to resign as Keir Starmer’s defence secretary last month.

Downing Street said on Tuesday that the tax cut was funded for the next financial year, but money would have to be found in future years from existing departmental budgets, suggesting spending cuts to come. No 10 has also ruled out using defence bonds to pay for higher military spending. Continue reading...