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.
188 Articles
188 Articles
Letter: Andy Burnham has the opportunity to improve EU relations
SIR - Andy Burnham has put the cost of living at the top of the agenda for his first few days as Prime Minister. The announcement on Tuesday that VAT is being removed from domestic electricity will be welcome.
BritCard Is Dead: Burnham Kills Starmer’s £1.8 Billion Digital ID To Pay For An Energy Tax Cut
BritCard Is Dead: Burnham Kills Starmer’s £1.8 Billion Digital ID To Pay For An Energy Tax Cut Ten months ago Keir Starmer warned that anyone without a government digital ID “will not be able to work in the United Kingdom.” On Tuesday – day two of the Burnham premiership – the scheme was formally killed...
‘More money back in the pockets of households in Newport East’ as PM scraps VAT
Jessica Morden MP has praised Andy Burnham for putting ‘more money back in the pockets of households in Newport East’ as the Government announced they are scrapping VAT on energy bills.
Andy Burnham starts his cabinet with the announcement of the elimination of VAT on the electricity bill and assures that his will be the government dominated by the reduction of the cost of livingWhat can change in the UK with Andy Burnham as the new prime minister The new British government led by Andy Burnham started this Tuesday with the announcement of the removal of VAT from the electricity bill.The laborer comes determined to concentrate o…
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