New British PM Scraps ID Card Plan, Cuts Spending

Andy Burnham, the new British prime minister, who will officially replace Keir Starmer on Monday, plans to scrap the government's plans to introduce a digital identification system as soon as he takes office. According to his allies, this is a clear signal that the new government is reassessing its priorities and wants to focus its resources and funding on addressing citizens' everyday problems, particularly the rising cost of living.

The digital ID system, originally intended to help combat illegal immigration, has faced criticism in the past, and a cross-party committee of lawmakers even labeled it a fiasco. Mandatory identity cards were abolished in the United Kingdom after World War II, and Britons commonly use passports or driver's licenses to verify their identity.

The UK Office for Budget Responsibility has estimated the cost of the digital project between fiscal years 2026/27 and 2028/29 at an astronomical $2.4bn.

Labour Party deputy leader Lucy Powell noted in a BBC interview that scrapping the scheme presents an opportunity for the government to start fresh. In interviews, she also confirmed that Burnham's cabinet will honor the previous government's commitments regarding North Sea oil and gas production, meaning it will respect existing licenses without issuing new ones.

She also added that the government is prepared to impose special measures on troubled water utilities, such as Thames Water.

(Reuters, Max)