Burnham cuts VAT on household electricity bills; UK borrows less than expected in June – business live
Summary
Andy Burnham, the new UK prime minister, has cut the VAT on household electricity bills to help with the cost of living. However, unemployment remains steady at 4.9%, and wages are growing slowly, meaning many people will still struggle with high energy costs.Key Facts
- The UK has cut VAT (a type of sales tax) on household electricity to reduce bills.
- Unemployment stayed at 4.9% in May, the same as in April.
- Job vacancies have dropped to 712,000, about half the number from 2022.
- Private sector earnings growth slowed to 2.9%, below economists’ expectations.
- Real wages (wages adjusted for inflation) are stagnant or could decline in the coming months.
- The VAT cut will reduce inflation by about 0.1 percentage points but is not enough to solve energy cost problems.
- Campaigners say many people still face very high energy bills and debt despite the VAT cut.
- The government may need to find more ways to help households without breaking fiscal rules or its promises.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
