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Andy Burnham removes VAT on electricity bills

2026-07-21 08:26:00, Kosova & Bota CNA

Andy Burnham removes VAT on electricity bills

The United Kingdom's new Prime Minister, Andy Burnham, has announced his first major policy initiative, announcing the removal of VAT from household electricity bills.

Under the government's plan, the VAT rate on electricity will be reduced from 5% to 0%, coming into effect on October 1. The move is expected to save the average household around £45 a year and is intended to ease the burden of the cost of living.

Burnham said the decision would give citizens "breathing space" in the face of rising costs, while Chancellor John Healey stressed the move would provide more security for families over the winter. According to the government, the cost of this initiative will be covered by canceling the national digital identity program.

A day earlier, Burnham officially took office as prime minister and unveiled his new cabinet, appointing Ed Miliband as foreign secretary, Louise Haigh as chancellor of the Duchy of Lancaster, Wes Streeting as defence secretary, while Angela Rayner returned to the post of housing secretary and Shabana Mahmood remained home secretary./ CNA





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