New UK Prime Minister Andy Burnham announces his first major cost-of-living measures by pledging to remove VAT from domestic electricity bills. Multiple outlets report the policy applies from 1 October, with coverage describing it as an immediate tax cut aimed at reducing household energy costs during the winter. The announcements are also framed as part of a wider “cost-of-living government” approach following Burnham’s entry into office. Reporting also states that the government links funding for the VAT removal to ending the previous administration’s Digital ID programme. While some coverage repeats Burnham’s position that cancelling Digital ID will pay for the energy VAT cut, at least one outlet reports criticism from a former minister who argues the overall package is not fully funded and that money may need to come from elsewhere. In addition to the electricity VAT change, one outlet reports Burnham is preparing further cost pressures relief, including a potential bus-fare cap, and plans to reduce business rates for hospitality, with the latter described as intended to support pubs and similar venues. Overall, the sources agree on the VAT-on-electricity headline policy and its October start date.
Andy Burnham announces VAT cut on household electricity bills to ease cost of living
New UK Prime Minister Andy Burnham announces his first major cost-of-living measures by pledging to remove VAT from domestic electricity bills. Multiple outlets report the policy applies from 1 Octobe...
- Andy Burnham announces removing VAT from domestic electricity bills.
- The VAT removal is set to start on 1 October.
- The policy is presented as part of Burnham’s early cost-of-living agenda.
- Reporting says the measure is linked to cancelling the government’s Digital ID programme for funding.
- Some reports also describe additional planned measures, including support for hospitality and possible transport-fare limits.
Andy Burnham said he was implementing an immediate tax cut to help ease cost of living pressures for households in Britain.
2 months agoAndy Burnham has used his first days in Downing Street to scrap the 5% VAT charged on household electricity bills and cap single bus fares in England at £2, telling his new cabinet that Britain now has a "cost of living government".
2 months agoThe new prime minister chaired his first cabinet after announcing a cut to VAT on household electricity.
2 months agoThe prime minister told his new cabinet in its first meeting that the government will be a 'cost-of-living government' and needs to examine 'all possible ways' to help families struggling with high costs. The new prime minister announced an £850m tax cut on electricity bills in his first significant policy announcement Continue reading...
2 months agoAndy Burnham promises costofliving push with VAT cut on electricity bills
2 months agoThe UK's new prime minister, Andy Burnham, has held his first cabinet meeting, telling ministers he will set out his plans "over the coming days" and promised to reveal how his government will pay for any reductions in tax.
2 months agoMr Burnham has announced that VAT will be removed from electricity bills from October.
2 months agoNew prime minister is implementing immediate tax cut to help ease cost of living pressures for British householdsAndy Burnham to cut VAT on electricity bills as first cost of living moveHousehold electricity bills for people in Great Britain will not attract VAT for six months, under the first of a series of cost of living measures announced by the new prime minister, Andy Burnham. Continue reading...
2 months agoBritish Prime Minister Andy Burnham said on Tuesday he would cut taxes on electricity bills, the first of several early moves to signal his intent to ease a cost-of-living crisis and quell anger over successive governments’ failure to bring change. On his second day in his new job, Burnham said his government would remove the value-added tax from domestic electricity bills from October 1, cutting around £45 from the average annual bill of around £1,862 that households pay. With bond investors...
2 months agoMr Burnham has announced that VAT will be removed from electricity bills from October.
2 months agoMr Burnham has announced that VAT will be removed from electricity bills from October.
2 months agoElectricity bills will be VAT free from October 1
2 months agoBurnham is attempting to act quickly to deliver on promises to tackle the UK's cost-of-living crisis.
2 months agoBritain's new Prime Minister Andy Burnham kickstarted his programme to ease the cost of living for millions of Britons by planning to remove tax on household electricity bills. The VAT cut is meant to reassure the markets ahead of his first cabinet meeting, with the new prime minister saying it will be funded by the scrapping of his predecessor's digital ID scheme. FRANCE 24's Rochelle Ferguson-Bouyahi tells us more.
2 months agoBritain's new Prime Minister Andy Burnham on Tuesday kickstarted his programme to ease the cost of living for millions of Britons by planning to remove tax on household electricity bills. The post New UK govt tackles cost of living with energy tax cut appeared first on Vanguard News.
2 months agoFirst major move by new PM aimed at giving families ‘breathing space’
2 months agoAndy Burnham was formally appointed Prime Minister yesterday (Picture: AP Photo/Kirsty Wigglesworth) Andy Burnham has made his first big policy announcement since walking through the door of No 10 yesterday, cutting tax on energy bills in a bid to help with the cost of living. But the move has already opened up a row within Labour over how it will be funded, with one of Keir Starmer’s top supporters slamming it on social media. Early this morning, the new PM announced VAT would be removed from household electricity bills from October 1. It’s expected this will mean around £45 will be taken off the energy price cap in October – which is expected to rise sharply due to Donald Trump’s war in Iran. In an appearance on Radio 4’s Today programme, new Business Secretary Jonathan Reynolds said the measure would stay in place for the rest of the financial year. Any longer-term decisions would need to be made in the Budget, he added. Make sense of the mad world of British politics Get analysis of the latest stories – including Andy Burnham's rise to Number 10 – direct to your inbox from Metro’s Senior Politics Reporter Craig Munro. Sign up here. John Healey, who was announced as Burnham’s surprise pick for Chancellor yesterday, said: ‘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 said the cut is ‘funded this year from cancelling the Digital ID programme’ – but that claim prompted a skeptical response on X from Starmer’s former Chief Secretary to the Prime Minister. Darren Jones showing off his plans for Digital ID on Downing Street earlier this year (Picture: Stefan Rousseau/PA Wire) Darren Jones, who led the Digital ID scheme, wrote: ‘Good news that VAT will be cut on electricity bills. It’s a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lower. ‘But the Digital ID program was unfunded. The government will have to set out how it will pay for its new policies at the budget.’ His intervention was shared gleefully by opposition MPs – including from the Conservatives, who previously called for VAT on energy bills to be scrapped. Shadow energy secretary Claire Coutinho said: ‘If Andy’s nicked our plan to cut VAT? Good. ‘But everyone’s energy bills are up by £300 since Labour came to office, and the former minister in charge of the Digital ID scheme has said this VAT package is unfunded – which means more tax rises are coming in the Budget.’ The energy bill announcement was the first from John Healey as Chancellor (Picture: Carl Court/Getty Images) The electricity bill announcement is expected to be the first of several announcements this week, which Burnham said would ‘give people breathing space’ amid the cost of living crisis. In an interview with the Times at the weekend, he said frustration at the level of the personal allowance – the amount of income you can have before you need to pay tax – was ‘one thing I heard most on the doorsteps’. Following his arrival at No 10 yesterday, he sacked Starmer loyalists including Rachel Reeves, David Lammy, Steve Reed and Peter Kyle from Cabinet. Alongside Healey and Reynolds, he has appointed Ed Miliband as foreign secretary, Wes Streeting as defence secretary, and given Angela Rayner back her old job of housing secretary. Get in touch with our news team by emailing us at webnews@metro.co.uk. For more stories like this, check our news page. Comment now Comments Add Metro as a Preferred Source on Google Add as preferred source
2 months agoAndy Burnham helps prepare breakfast during a visit to The Passage Homeless Charity in London.Andy Burnham will announce plans to slash business rates for the hospitality sector by 20% within days, HuffPost UK can reveal.The new prime minister has already announced that VAT is to be removed from electricity bills to help households struggling with the cost of living.A £2 cap on bus fares is also set to be unveiled, possibly as soon as tomorrow, as Burnham begins his time in office with a policy blitz.During the Makerfield by-election campaign last month, Burnham said he wanted to cut business rates for pubs, clubs and music venues by 20%.He also vowed to raise the threshold at which independent hospitality, leisure and retail companies start to pay the charge, thereby slashing their bills.Burnham said the policy would be funded by increasing the rates on large, out-of-town warehouses used by the likes of Amazon.He said: “Our high streets matter to me because they matter to the people who live here.“I want to make sure that these family-owned businesses, as the heart and soul of this country, are protected and given the chance to thrive.”A source close to Burnham said they would not “get ahead of the announcement”.The new PM has said he wants to tackle soaring costs to give Brits some “breathing space”.Announcing his plan to slash electricity bills on Tuesday morning, he said: “Westminster has not been working for people for too long, with families struggling with the cost of living.“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 new PM said removing VAT from bills would be paid for by his decision to scrap Keir Starmer’s digital ID scheme.But Darren Jones, who was sacked from the cabinet by Burnham on Monday, said that scheme was “unfunded” so the government would have to find the money from somewhere else.Listen to Commons People, the podcast that makes politics easy. Every week, Kevin Schofield and Kate Nicholson unpack the week’s biggest stories to keep you informed. Join us for straightforward analysis of what’s going on at Westminster.Related...VAT To Be Cut From Electricity Bills To Bring Down Cost Of LivingEnergy Bills Set To Fall As Andy Burnham Pledges To Give Voters 'Breathing Room'Labour Splits Erupt As Sacked Minister Says Andy Burnham's Energy Tax Cut Is 'Unfunded'
2 months agoThe PM will remove VAT from energy bills to “give people breathing space” The post Andy Burnham cuts tax on electricity bills to bring down cost-of-living appeared first on Left Foot Forward: Leading the UK's progressive debate.
2 months agoThe PM will remove VAT from energy bills to “give people breathing space” The post Andy Burnham cuts tax on energy bills to bring down cost-of-living appeared first on Left Foot Forward: Leading the UK's progressive debate.
2 months agoMove is expected to save households around £45 a year in effort to tackle cost of livingBurnham to cut VAT on electricity bills in first cost-of-living moveGood morning and welcome to our live coverage of UK politics. Andy Burnham has announced an £850m tax cut on electricity bills to help ease cost of living pressures in his first significant policy announcement as prime minister. It means that electricity bills will be reduced by an average of £45 a year from October.Downing Street said the move will be partly funded by scrapping Keir Starmer’s digital ID scheme, which would have cost an estimated £1.8bn over three years.Good news that VAT will be cut on electricity bills. It’s a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lower. But the DigitalID program was unfunded. The government will have to set out how it will pay for its new policies at the budget.Chancellor: John HealeyForeign secretary: Ed MilibandHome secretary: Shabana MahmoodHealth secretary: Yvette CooperWork and pensions secretary: Pat McFaddenHousing secretary: Angela RaynerBusiness secretary: Jonathan ReynoldsEducation secretary: Lucy PowellEqualities minister: Bridget PhillipsonCulture secretary: Lisa NandyDefence secretary: Wes StreetingJustice secretary: Alex NorrisEnvironment secretary: Angela EagleEnergy secretary: Miatta FahnbullehScottish secretary: Douglas AlexanderWelsh secretary: Stephen KinnockNorthern Ireland secretary: Chris BryantTransport secretary: Heidi AlexanderChancellor of the Duchy of Lancaster: Louise Haigh Continue reading...
2 months agoNew Prime Minister Andy Burnham has promised to ease the cost of living - and this includes new help for energy bills this winter
2 months agoPrime Minister Andy Burnham said the measure would put money in people’s pockets and ‘bring back hope’.
2 months agoEnergy bills will be VAT free from October 1, the new Prime Minister has announced
2 months agoAndy Burnham promised to deliver 'breathing space' for families during his maiden speech outside No 10, and has already helped millions of families in the UK by abolishing VAT on electricity bills
2 months agoPrime Minister Andy Burnham said the measure would put money in people’s pockets and ‘bring back hope’.
2 months agoThe UK will scrap a 5% tax on energy bills starting from October, new Prime Minister Andy Burnham announced, the first of several policies expected to offer households more “breathing space” with the cost of living.
2 months agoThe government of new British Prime Minister Andy Burnham will cut taxes on electricity bills, Downing Street said in a statement on Tuesday, as he attempts to deliver on his promises to ease a cost-of-living crisis. The British government is planning to remove the value-added tax (VAT) from domestic electricity bills from October 1, the […]
2 months agoPrime Minister Andy Burnham said the measure would put money in people’s pockets and ‘bring back hope’.
2 months agoRolling coverage of the latest economic and financial newsThe removal of VAT from electricity bills is positive but it does not address the scale of the problem that British households are facing, campaigners at the End Fuel Poverty Coalition have said.Simon Francis, coordinator of the group, said:Removing VAT from electricity bills is a positive statement of intent by the new administration. But it does not address the scale of what households are facing, with millions still left paying an unaffordable share of their income on energy and record levels of energy debt built up over successive winters of high bills. The prime minister’s next move must be to go even further on bringing down the cost of energy and bringing in increased levels of targeted support for those who need it most: an enhanced warm home discount, reformed cold weather payments and an energy debt relief scheme. This breathing space is also not a cure. The only way to bring bills down for good is to change how they are set. That means breaking the link between gas and electricity prices, tackling excess profits in the energy industry and ending our exposure to volatile fossil fuel markets through homegrown renewables and more energy efficient homes.Cutting VAT gives immediate relief to homes and businesses and is a very welcome first step to making electricity as cheap as possible. Electrifying our economy is the way we take advantage of cheap, homegrown renewable power to cut bills, reduce energy dependence and boost economic growth.There is continued pressure on wholesale prices, driven by the situation in the Middle East, meaning it is likely that the October 1 price cap will increase.Some supplier predictions suggest the next price cap could rise 5% from October for a household with both gas and electricity, so this tax change could take the sting out of a potential increase.Westminster has not been working for people for too long, with families struggling with the cost of living.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.Fiscal control is the first duty of any chancellor. It is mine. And fiscal credibility is the bedrock for economic stability and for national security, and you heard the prime minister this afternoon say, in this more dangerous world, we will meet our commitments on defence to our international allies…7am BST: ONS Labour market figures and public financesToday: New PM Andy Burnham to announce cost of living measures Continue reading...
2 months agoPrime Minister Andy Burnham has announced a fresh tax cut to remove VAT from domestic electricity bills from October 1.
2 months agoNew Prime Minister Andy Burnham said scrapping VAT on domestic electricity bills from October will give households "breathing space" as they continue to face cost of living pressures.
2 months agoBritain’s new Prime Minister has given a major boost to households at the start of his second day in office. Andy Burnham has announced VAT is being completely removed from domestic electricity bills this winter. The measure to cut the cost-of-living will apply from October in England, Wales and Scotland, with Northern Ireland to receive […] The post New UK Prime Minister scraps VAT on electricity bills this winter appeared first on Highland Radio - Latest Donegal News and Sport.
2 months agoAndy Burnham says he will remove VAT for household electricity bills, marking his first major costed policy announcement as prime minister.
2 months agoThe newly appointed chancellor John Healey said the cut would be funded this year from cancelling the Digital ID programmeAndy Burnham has announced a fresh tax cut to remove VAT from domestic electricity bills from 1 October, a move that will funded from cancelling the Digital ID programme.The prime minister said in a statement: “Westminster has not been working for people for too long, with families struggling with the cost of living. 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.” Continue reading...
2 months agoNew prime minister has vowed to help households with the cost of living
2 months agoThe UK's new leader moved to remove VAT from electricity bills from October 1. The move comes before Burnham chairs his first cabinet meeting later today.
2 months agoThe UK will scrap a 5% tax on electricity bills starting from October, as new Prime Minister Andy Burnham pledged to offer families struggling with the cost of living more “breathing space”.
2 months agoBritain's new Prime Minister Andy Burnham speaks to staff and media at 10 Downing Street in London, Monday, July 20, 2026.(AP Photo/Kirsty Wigglesworth)VAT is to be removed from electricity bills as Andy Burnham attempts to make good on his promise to bring down the cost of living.The move, which will apply from October 1, is expected to cut the energy price cap by £45.It will be funded by the new prime minister’s decision to scrap Keir Starmer’s plan to bring in digital ID.Burnham said: “Westminster has not been working for people for too long, with families struggling with the cost of living. “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.”This is a breaking news story and will be updated. Follow HuffPost UK on Twitter, Facebook and Instagram.
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