New UK Prime Minister Burnham Cuts Electricity Tax

Britain has announced the removal of Value Added Tax (VAT) on domestic electricity bills as part of efforts to ease the rising cost of living for millions of households.

New Prime Minister Andy Burnham announced the measure on Tuesday, a day after taking office.

According to the government, VAT will be removed from the United Kingdom (UK) domestic electricity bills from October 1, saving the average household about £45 ($61) each year.

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“We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope,” Burnham said in a statement.

New UK government to cut tax on household electricity bill. Credit: The Guardian.

The government said the tax cut will take effect before the next expected increase in electricity and gas prices under the UK energy regulator Ofgem’s price cap.

They added that the policy will be funded by cancelling former Prime Minister Keir Starmer’s proposed digital identity scheme, which was projected to cost taxpayers £1.8 billion.

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Deborah Akwa

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