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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.
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·Antwerp, Belgium
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New UK PM touts 'cost of living government' with tax cut and £2 buses
Andy Burnham has used his first days in Downing Street to scrap the 5% VAT charged on household electricity bills and cap single bus fares in England at £2, telling his new cabinet that Britain now has a "cost of living government".
·Lyon, France
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Total News Sources206
Leaning Left33Leaning Right37Center54Last UpdatedBias Distribution43% Center
Bias Distribution
- 43% of the sources are Center
43% Center
L 27%
C 43%
R 30%
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