Britain’s new Prime Minister Andy Burnham on Tuesday Announced that taxes on household electricity bills will be cutBy removing VAT from 1st October.
In a statement issued by Downing Street, the measure was described as an effort to “give millions of families breathing space this winter”.
“We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring hope back,” Burnham said.
The cut in VAT on electricity bills was expected to shave £45 (€52.97, $60.48) off the annual price cap, according to a government statement.
The statement said the measure was being funded through the cancellation of the digital ID programme, which was set to cost £1.8 billion over the next three years.
Burnham will call the first cabinet meeting
Burnham is expected to set out her first policies as the new British Prime Minister as she calls her first cabinet meeting on Tuesday.
On Monday, as soon as she took office, Burnham said she would present a 10-year plan for a new economic and political model by the end of the year.
He said he was aware that Britain was facing a cost of living crisis and promised to put forward some proposals to ease the situation.
The Labor leader said his first concern was to “end the rough sleeping in this country” and ease the housing crisis, before promising to “bring hope back” to all residents of Britain.
Burnham made some important changes in his administration. Former Defense Secretary John Healey replaced Rachel Reeves as Finance Minister, Ed Miliband became Foreign Secretary and left-wing leader Angela Rayner returned to her old post as Housing Secretary.
Renner resigned as Deputy Prime Minister and Housing Minister in September 2025 amid a property tax controversy.
Many more to follow…