Burnham Cuts VAT on Electricity Bills Ahead of First Cabinet Meeting – UK Politics Live The newly appointed Prime Minister Andy Burnham has made a significant policy announcement by cutting Value Added Tax (VAT) on electricity bills.
The average household will save around £45 per year, with the government committing to an £850m tax cut. However, critics are questioning the sustainability of this move and how it will be funded.
The government claims that scrapping the digital ID scheme proposed by Keir Starmer's administration will provide the necessary £1. 8bn over three years to finance the VAT cut.