Incoming Prime Minister Andy Burnham is set to scrap Sir Keir Starmer’s contentious £2 billion digital identity card scheme as part of an immediate "reset of priorities." The newly appointed Labour leader plans to officially ax the national identity programme to signal a decisive shift away from his predecessor's agenda.

Government insiders indicate that the multi-billion-pound budget will instead be redirected to tackle the ongoing cost-of-living crisis and provide direct financial relief to struggling households.

The decision has been widely welcomed by civil liberties groups and privacy advocates, who had long campaigned against the digital ID initiative due to surveillance and data security concerns. However, tech sector analysts and civil service unions warn that abandoning the framework could severely delay the much-needed modernization of public services, such as the NHS and border control.

Burnham’s team counters that public trust and immediate economic survival must take precedence over expensive tech infrastructure projects.

By abandoning the flagship policy, Burnham aims to draw a clear line between his administration and the previous Starmer leadership. The move is designed to reassure working-class voters that the new government is laser-focused on practical, everyday economic pressures rather than abstract state bureaucracy.

Ministers are expected to outline the exact details of the budget reallocation and alternative public service updates in an upcoming emergency fiscal statement next week.