Britain's new Prime Minister to cut taxes on electricity bills

The new British Prime Minister Andy Burnham will cut taxes on electricity bills. This move aims to ease the ongoing cost-of-living crisis for citizens. The government plans to remove value-added tax from domestic electricity bills starting Octob...

Reuters
UK Prime Minister Andy Burnham will scrap VAT on household electricity bills from October 1 to ease the cost-of-living crisis, with the measure funded by cancelling the digital ID programme.
The 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 statement said.

Read more: What is Andy Burnham's policy approach for Britain?


The cost of this action for this financial year will be funded from the cancellation of the ⁠government's £1.8 billion ($2.42 ‌billion) digital ID programme, Downing Street said.

Burnham's office had said earlier ⁠that one of his first moves as Britain's ​next leader will be to scrap ​government plans for a digital ID scheme.

The digital ID programme is a plan for all employees to hold a digital identity document, a scheme designed to tackle illegal migration ‌but deemed a "fiasco" by a cross-party committee of lawmakers.
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As Britain's new Prime Minister, ​Burnham wants ​to move quickly ⁠to show British politics can work and improve living standards after years of stagnation.

Read more: Andy Burnham becomes Britain's 7th prime minister in a decade after Starmer resigns

"Westminster has not been ​working for people for too long, with families struggling with the cost of living," Burnham said.

"That needs to change," he added.
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