Prime Minister Andy Burnham Cuts Taxes on Energy Bills to Ease Cost-of-Living Burden
Andy Burnham's government removes VAT from domestic electricity bills from October 1, saving households an estimated £45 annually and funded by cancelling the Digital ID programme.
- On Tuesday, Prime Minister Andy Burnham announced VAT will be removed from domestic electricity bills starting October 1, cutting the rate from 5% to 0% and saving typical households around £45 annually.
- The £850 million cost for the current financial year will be funded by cancelling the proposed £1.8 billion Digital ID programme, with Burnham citing the need to give families 'breathing space' during the cost-of-living crisis.
- Energy suppliers are expected to pass savings to all customers, including those on fixed tariffs, as officials estimate the VAT reduction will lower inflation by around 0.10 percentage points; the cut excludes Northern Ireland due to European Union VAT rules.
- Consumer groups welcomed the move as a 'positive statement of intent,' though former minister Darren Jones labelled the funding 'unfunded,' and Martin Lewis cautioned rising price caps could offset the projected savings.
- Burnham pledged to maintain strict fiscal discipline while exploring broader economic reforms, with further measures detailed at the next budget as the government navigates volatile energy markets amid US-Iran conflict pressures.
160 Articles
160 Articles
Andy Burnham’s cabinet of austerity and war
Burnham’s declaration that his was a “cost-of-living government” amounted to a pledge to scrap VAT sales tax on domestic electricity, saving a typical household just £45 annually, or 86 pence a week. Even this provoked a media backlash.
Britain's new Prime Minister Andy Burnham promises a reindustrialization of the country and first cuts VAT on electricity. But to solve the real problems, that won't be enough.
Day One Promise Delivered: PM Andy Burnham Cuts Electricity Tax for Immediate Relief
Millions of households across the UK will see their electricity bills fall from 1 October after Prime Minister Andy Burnham abolished VAT on domestic electricity bills on his first day in office, delivering on his pledge to begin easing the country's cost-of-living pressures with immediate action. The move will cut around £45 from the annual Ofgem price cap, adding to the £150 already removed from energy bills at the last Budget. Announced withi…
The new British Prime Minister Burnham reorganized the cabinet shortly after his appointment and convened for his first meeting.
Coverage Details
Bias Distribution
- 40% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
