Pakistan, July 21 -- UK Prime Minister Andy Burnham announced an energy tax cut on Tuesday as he pledged to lead a government focused on reducing living costs. The move marks his first major policy decision since taking office.

Burnham told his cabinet that the government must provide people with relief from rising expenses. He said ministers should explore all possible measures to reduce the cost of living.

Read more: Andy Burnham becomes UK prime minister

According to the government, electricity bills will become exempt from value-added tax from October 1. The measure is expected to save an average household about £45 annually.

Meanwhile, the government said the tax reduction would cost around £850 million during the curre...