UK Prime Minister Andy Burnham on Tuesday, 21 July, announced the cancellation of value-added tax (VAT) on household electricity bills. This marks one of the first steps by the new government to alleviate the cost-of-living crisis and address public dissatisfaction with previous administrations’ failure to implement changes.
Details and financing
On his second day in office, Andy Burnham announced that VAT on household electricity bills will be abolished starting 1 October. This change is expected to lower the average annual household bill by approximately £45, from the current level of around £1,862.
Burnham indicated that this measure will be funded by savings from the cancellation of the £1.8 billion ($2.42 billion) digital identification program, which was announced on Sunday. He stated that these funds will support the new tax relief.
In his statement, Andy Burnham said: “We are immediately cutting taxes on electricity bills to leave people with more money and restore hope.” He also promised to provide the British public with more “breathing space” in their daily lives.
Source: Channel NewsAsia
