Forex▲ Bullish
UK VAT Cut on Energy Bills: £45 Savings, 0.1% CPI Impact
Burnham's VAT cut shaves 0.1% off CPI, reduces household bills by £45, and is funded by scrapping the £1.8 billion digital ID scheme.
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Prime Minister Burnham scrapped VAT on energy bills effective 1 October, a move he said will cut average household costs by £45 ahead of the winter price cap adjustment. The policy carries a roughly £850 million price tag, funded by cancelling the previously proposed digital ID scheme, which had been estimated to cost about £1.8 billion over several years.
“I said I wanted to give people breathing space, and that's what I'm announcing on my second day as prime minister,” Burnham said. “We're taking immediate action to cut taxes on energy bills, put more money in people's pockets and bring back hope.”