Burnham cuts VAT on electricity bills in first major policy announcement – UK politics live
Summary
Andy Burnham, the new UK prime minister, announced a tax cut on electricity bills to help with the cost of living. The government plans to spend an extra £340 million over three years to reduce homelessness and will fund the electricity bill cut partly by cancelling a digital ID scheme.Key Facts
- Andy Burnham is the newly appointed UK prime minister.
- He announced an £850 million cut in tax on electricity bills, lowering bills by about £45 a year from October.
- The government will add £340 million over three years to fight rough sleeping (homelessness).
- The electricity bill cut will be partly paid for by scrapping a digital ID card program that would have cost around £1.8 billion over three years.
- Some critics from other parties say the tax cut plan is confusing and not well funded.
- The digital ID scheme was previously judged as not fully funded by the Office for Budget Responsibility.
- The new business secretary, Jonathan Reynolds, said the tax cut shows the government’s priorities.
- The government promises not to raise main income tax, national insurance, or VAT rates to pay for these changes.
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