Andy Burnham announces fresh tax cut to ‘bring back hope’ for struggling families
Prime Minister Andy Burnham has announced a new tax cut on household electricity bills in a bid to “bring hope back” to families struggling with the cost of living.
Standing on the steps of Number 10 on Monday, the new prime minister vowed to provide an early “breathing space” to households struggling with the cost of living.
Earlier on Tuesday he and his new Chancellor John Healey announced that VAT would be removed from domestic electricity bills from 1 October.
“Westminster has not been working for people for too long, families are struggling to make ends meet,” Mr Burnham said.
“This needs to change. I said I want to give people a chance to breathe, and I’m announcing this on my second day as Prime Minister.
“We’re taking immediate action to reduce taxes on energy bills, put more money in people’s pockets and bring hope back.”
The change is expected to reduce the annual Ofgem price cap by around £45 from October, with companies expected to pass this reduction on to customers.
Chancellor John Healey said: “Too many people have struggled with the cost of living for too long.
“Today’s energy tax cut will give families some breathing room on bills and provide some reassurance this winter.
He continued: “This measure was funded by the cancellation of the Digital ID scheme this year and will help reduce inflation while supporting households in every postcode.”
In his first address to the nation as Prime Minister, Mr Burnham promised the biggest change in British politics in 40 years and said he would deliver “a new political model and a new economic model” for Britain.
On Monday evening Mr Burnham made sweeping changes to the Cabinet, starting with the appointment of John Healey as the new Chancellor, replacing Rachel Reeves.
A number of key figures from Sir Keir Starmer’s era have joined Ms Reeves in leaving the government, including former deputy prime minister David Lammy, former attorney-general Lord Hermer and former housing secretary Steve Reed.
Their replacements in senior Government roles were announced throughout Monday evening and he will join Mr Burnham at the Downing Street Cabinet Room table on Tuesday.
