Andy Burnham will signal a major break with the Keir Starmer government by ditching controversial £2bn plans to introduce digital ID.
The policy had been strongly opposed by many Labour MPs who saw it as a waste of money, as well as an assault on individual liberty and an echo of what Tony Blair and Gordon Brown attempted to introduce previously.
Sir Keir, who claimed it was essential for preventing illegal working, had already had to U-turn on plans to make it compulsory because of internal opposition and now the scheme is set to be scrapped altogether.
The move comes as Mr Burnham is expected to ruthlessly overhaul many of the problems which left Sir Keir’s government under siege.
Sources have also said he plans to scrap the reforms to water down the right to a jury trial, and restore rebel MP Karl Turner to the parliamentary party after he was suspended for opposing the proposal.
The Independent also learned the new prime minister will look to set a roadmap to restore 0.7 per cent of GDP spent on international aid to boost the UK’s soft power.
But the decision to scrap digital ID reflects the incoming government's central mission to reset priorities and focus on the day-to-day challenges people face across the country.
This reprioritisation of public resources marks a shift towards improving everyday life and strengthening local economies rather than expensive national government schemes.
A spokesperson for Mr Burnham said: “One of the first things this government will do is put its focus where people need it right now: creating breathing space and delivering change they can feel in their everyday lives.
“That means all the time and resource that was going to be spent on a national ID scheme will go instead to where it’s most needed, such as helping with the cost of living.
“This government is determined to bring power back to communities, instead of hoarding it in Whitehall. We will work every day to lift this country back up to where it belongs – with growth in every postcode, and hope in every heart.”
However, a source noted Mr Burnham is clear the UK will continue to crack down on illegal working.
The new government said it will continue to build on the progress by the previous government in tackling illegal working, which saw nearly 13,000 enforcement visits and over 9,000 arrests in 2025.
Right-to-work checks will remain mandatory for all employers, who can already carry them out digitally – a more secure system than paper documents, which are easier to forge.
The Border Security, Asylum and Immigration Bill will extend right-to-work checks to gig economy and zero-hours workers across construction, food delivery, beauty, courier and warehousing sectors for the first time.
