Britain's New Prime Minister Will Eliminate VAT on Electricity for Households
British Prime Minister Andy Burnham plans to eliminate the value-added tax on residential electricity bills as early as October. This decision will mark his first major policy move as head of government.
The VAT rate applied to household electricity will be reduced from 5% to 0% effective October 1.
The new prime minister noted that this measure “will give people some breathing room” and allow them to save more money.
The UK’s new Chancellor of the Exchequer, John Gili, stated that the elimination of VAT on household electricity will be funded by scrapping the digital ID program.
Gilly clarified that the rate reduction will allow the average family to save about 45 pounds a year. In addition, he said, this measure will help lower inflation while supporting households in all regions of the country.
“For too long, too many people have struggled with the high cost of living,” Gili said.
This was reported by the BBC.
The United Kingdom has officially changed prime ministers.
Read more in our article: A Socialist from Manchester Who Could Lead Britain: Who Is Andy Burnham?
British MP Andy Burnham has become the new leader of the ruling Labour Party. He has taken the helm of the political party currently in power in the United Kingdom.
