Burnham announces plans to cut VAT on electricity bills as first cost-of-living move

The newly appointed chancellor John Healey said the cut would be funded this year from cancelling the Digital ID programme

Andy Burnham has announced a fresh tax cut to remove VAT from domestic electricity bills from 1 October, a move that will funded from cancelling the Digital ID programme.

The prime minister said in a statement: “Westminster has not been working for people for too long, with families struggling with the cost of living. That needs to change. I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as prime minister.”