News Investigators/ British Prime Minister Andy Burnham on Tuesday announced the removal of tax on household electricity bills in a move aimed at reducing pressure on families facing rising living costs, according to the government.
The government said in an official statement that it would scrap the five per cent value-added tax on household electricity bills from Oct. 1.
The measure is expected to lower annual electricity costs for a typical household by about 45 pounds (60.2 U.S. dollars) under the price cap set by Ofgem, the regulator for Britain’s electricity and natural gas markets.
The tax cut, which would be funded by the cancellation of the Digital ID programme, follows a 150 pound (200.67 dollar) reduction in energy bills announced in the previous budget.
Burnham said the move was part of efforts to provide relief to households affected by the cost of living crisis.
“Westminster has not been working for people for too long, with families struggling with the cost of living,” he said, adding that his government would introduce changes to address the situation.
“I said I want to give people breathing space, and that’s what I’m announcing on my second day as prime minister,” Burnham added.
Burnham became Britain’s seventh prime minister since 2016 after officially taking office on Monday.
He has promised wide-ranging political and economic reforms aimed at benefiting the country and its citizens.
Xinhua/NAN