What do Andy Burnham's tax cuts mean for London?
New UK Prime Minister Andy Burnham has introduced tax cuts, including a VAT reduction on electricity bills and business rate cuts for pubs. Analysts suggest these measures will provide minimal financial relief to the average London household.
Why it matters
The policy changes reflect the government's attempt to address the cost-of-living crisis, though experts question the efficacy of these specific tax adjustments.
Image source, Getty Images Image caption, The pub industry has faced rising costs since the pandemic
Since Andy Burnham became prime minister on Monday, he has made several changes in policy designed to help households and businesses.
There have been three announcements so far: a cap on bus fares, the removal of 5% VAT on domestic energy bills and a 20% cut in business rates for most pubs, clubs and live music venues.
But will his plans make much difference to Londoners and the capital's businesses?
The reduction from 5% VAT to zero is estimated to save a typical household about £45 a year, which works out at just over 86p a week.
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