Politics · 21 July 2026

Burnham's £850m VAT cut: How digital ID will pay

House of Commons via Wikimedia Commons (CC-BY-3.0)

Prime Minister Andy Burnham said removing VAT from electricity bills will cut around £45 from the yearly Ofgem, the energy watchdog, price cap and cost about £850m. He said scrapping the previous government’s £1.8bn digital ID programme will pay for it. Small businesses, some charities and eligible care homes will also get lower bills, with inflation forecast to fall 0.1%.

By BriefTea Editorial · 21 July 2026 at 6:25

Reported by Sky News · How we write briefs

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How can Burnham cut VAT? Has VAT been cut before? What is VAT and why cut it?

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