Prime Minister Andy Burnham has announced plans to eliminate Value Added Tax (VAT) on household electricity bills, a move he claims will save the average household approximately £45 annually. The proposal, which Burnham stated would take effect in October, is envisioned as part of a broader effort to establish a "cost of living government."
According to Downing Street, the funding for this tax cut would be derived from the cancellation of Keir Starmer's digital ID scheme. However, former minister Darren Jones has raised concerns about the digital ID scheme, characterizing it as "unfunded."