Andy Burnham announces tax cuts for electricity bills
Prime Minister Andy Burnham has announced a fresh tax cut for household electricity bills to “bring back hope” for families struggling with the cost of living, reports BritPanorama.
The new premier promised to provide early “breathing space” for households as he addressed the nation on the steps of No 10 on Monday.
On Tuesday, he and his new Chancellor John Healey revealed that VAT will be eliminated from domestic electricity bills starting October 1.
“Westminster has not been working for people for too long, with families struggling with the cost of living,” Mr Burnham stated.
He continued, “That needs to change. I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as Prime Minister.”
“We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”
The tax cut is estimated to reduce the annual Ofgem price cap by around £45 from October, with energy companies expected to pass this reduction onto customers.
Chancellor John Healey emphasized the significance of this policy change, stating, “For too long, too many people have struggled with the cost of living. Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.”
He noted that this measure is funded this year by cancelling the Digital ID programme and aims to help curb inflation while supporting households across the country.
In his inaugural address, Mr Burnham pledged the largest shift in British politics in 40 years, vowing to establish “a new political model and a new economic model” for the UK.
On Monday evening, he implemented extensive changes in the Cabinet, beginning with John Healey’s appointment as Chancellor, succeeding Rachel Reeves.
Several key figures from Sir Keir Starmer’s tenure departed the government, including ex-deputy prime minister David Lammy and former attorney general Lord Hermer, with their replacements announced throughout Monday evening for roles in the new administration.
As Burnham embarks on this ambitious agenda, the implications of these tax cuts and Cabinet reshuffle will be keenly observed in the coming months.
