Newly appointed Prime Minister Andy Burnham's first major policy initiative, a promise to cut VAT on household electricity bills from October 1, has already drawn criticism.

Darren Jones, a former Chief Secretary to the Prime Minister who worked alongside Sir Keir Starmer, publicly questioned the financial backing for Burnham's VAT cut policy. Jones, who was removed from his ministerial role following a recent reshuffle, voiced his concerns via a social media post.

Jones acknowledged the potential benefit of the VAT cut for families and its impact on inflation, stating it's a "simple way for families to save a few quid." However, he immediately pivoted to critique, highlighting that the "DigitalID program was unfunded" and that the government "will have to set out how it will pay for its new policies at the budget."

This public critique from a former senior figure within the governing party comes just as Burnham prepares to hold his first cabinet meeting. The comments underscore the immediate challenge of fiscal responsibility facing the new administration and echo previous concerns raised about the funding of the DigitalID program.

The timing of Jones's remarks is particularly notable, occurring mere hours after Burnham's policy announcement and following a significant reshuffle that saw several ministers loyal to the former leadership, including Jones himself, depart from senior positions. Jones's departure was described as a "pretty significant cull of the ministers closest too and most loyal to the now former prime minister."

Concerns about the funding of the DigitalID program, which Jones previously advocated for, were documented in the Office for Budget Responsibility's Economic and Fiscal Outlook from November. The report referenced Digital ID multiple times, noting that "no specific funding has been identified" for its costs, estimated at £0.6 billion annually, and pointing out risks around its implementation without explicit provision.

Burnham, in his first address as Prime Minister, emphasized the need to outline how new policies will be financed. This focus on fiscal prudence is crucial, especially after Starmer's successor had stressed the importance of ending factionalism within the Labour Party, a sentiment that Jones's public criticism appears to challenge.

The situation raises questions about internal party dynamics and the scrutiny that new government policies will face, particularly from those who have recently held significant positions within the administration. The coming days will likely reveal further reactions and the government's strategy for addressing these fiscal concerns.