Andy Burnham to cut VAT on electricity bills as first cost of living move
UK Prime Minister Andy Burnham has announced a VAT cut on electricity bills as his first major policy move to address the cost of living crisis. The policy is intended to be funded by scrapping a digital ID scheme, though the move has faced immediate criticism regarding its financial viability.
Why it matters
This represents a significant shift in UK fiscal policy and highlights potential internal government friction regarding the funding of new initiatives.
Andy Burnham makes his first speech as UK prime minister in Downing Street on Monday. Photograph: Tejas Sandhu/Sopa Images/Shutterstock Andy Burnham makes his first speech as UK prime minister in Downing Street on Monday. Photograph: Tejas Sandhu/Sopa Images/Shutterstock Andy Burnham Andy Burnham to cut VAT on electricity bills as first cost of living move Newly appointed chancellor John Healey says reduction will be funded by cancelling digital ID scheme
Prefer the Guardian on Google Electricity bills will be reduced by an average of £45 a year from October, after Andy Burnham announced the government would remove VAT from them.
The new prime minister said on Tuesday he was implementing an immediate tax cut to help ease cost of living pressures for households in Britain.
The move comes a day after Burnham became prime minister, promising to give voters “some breathing space” on living costs with a series of policy interventions.
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