Andy Burnham said the tax cut would save about £45 a year on an average household electricity bill and be funded by scrapping a £1.8 billion digital ID programme.
Britain will remove value-added tax from domestic electricity bills from 1 October, with Prime Minister Andy Burnham saying the move will cut about £45 from the average annual household bill of around £1,862. Burnham cast the measure as an early step to ease cost-of-living pressures and said it would be funded by savings from cancelling a £1.8 billion digital ID programme announced on Sunday. The policy comes as investors scrutinise how the new government and finance minister John Healey will pay for support measures, after borrowing costs rose on Monday. Critics questioned whether the tax cut would materially help households, with energy experts warning gas-price pressures linked to conflict in the Middle East could push the energy price cap higher in October, and the Resolution Foundation saying bills are still set to rise by more than £150 that month.