Burnham cuts VAT on electricity bills in first major policy announcement – UK politics live

Move is expected to save households around £45 a year in effort to tackle cost of living

https://www.theguardian.com/politics/2026/jul/21/burnham-announces-plans-to-cut-vat-on-electricity-bills-as-first-cost-of-living-move">Burnham to cut VAT on electricity bills in first cost-of-living move

The newly appointed business secretary, Jonathan Reynolds, has defended the policy, declaring the cut to VAT on electricity bills “a statement of priorities”.

Responding to https://x.com/darrenpjones/status/2079457574215119097">Darren Jones’s claim that the cut remained unfunded, Reynolds told Radio 4’s Today programme:

They are part of the government’s pressure, it is a legitimate decision to remove that pressure and instead use the allocation of resources … It’s a straightforward switch spend, it’s the right decision to make, and one that will be made by the British people.