Home›Global Markets›Europe›UK to remove VAT from domestic electricity bills from…

UK to remove VAT from domestic electricity bills from Oct. 1

The VAT cut is expected to reduce the average annual household electricity bill by about £45, and it will be funded by scrapping a £1.8 billion digital ID program.

Reported · Written up by our desk · Europe

British Prime Minister Andy Burnham said the UK will remove value-added tax from domestic electricity bills starting October 1, part of an early package aimed at easing the cost-of-living pressure.

According to SCMP Economy, the government expects the change to cut around £45 from the average annual electricity bill of about £1,862 for households.

Burnham said bond investors will watch how the support is financed, and he said the VAT removal will be funded by savings from cancelling a £1.8 billion digital ID programme announced on Sunday.

In remarks carried by Reuters, Burnham said the immediate actions may not fully relieve pressure on households facing higher prices, with a longer-term plan to be laid out later this year.

More like this

Sources