Burnham plans VAT cut on electricity bills

New Prime Minister Andy Burnham announced an immediate VAT cut on domestic electricity bills, effective from October 1, as part of a broader plan to relieve the cost-of-living crisis and give households breathing space. The policy is expected to cut the annual price cap by about £45, with the change to be funded this year by scrapping the Digital ID programme that had been proposed by the previous government. Burnham’s move was framed as swift action on day two in office, accompanied by Chancellor John Healey who emphasized relief for families and potential inflation benefits. Northern Ireland will continue to pay the VAT as the region adheres to EU tax rules. Critics questioned how the policy would be financed, while supporters argued it would help incentivize energy efficiency and reduce living costs across postcodes.