Forex▲ Bullish
Burnham's VAT cut faces questions over funding source
Labour's Darren Jones says the digital ID scheme was unfunded, challenging the government's claim that scrapping it covers the £850 million VAT cut.
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UK prime minister Burnham's first major policy announcement is less than 24 hours old and already facing a credibility problem.
Burnham said the government would cut VAT from energy bills, costing roughly £850 million. Officials said the cost would be covered by scrapping a digital ID scheme, which was estimated to cost about £1.8 billion over the coming years.
Labour lawmaker Darren Jones challenged that claim. The digital ID program was unfunded in the first place, he said. "The government will have to set out how it will pay for its new policies at the budget."