UK PM Andy Burnham Pledges ‘Cost of Living Government’, Announces VAT Cut on Household Electricity Bills

Brief by Shorts91 Newsdesk / 01:21pm on 21 Jul 2026,Tuesday International

UK Prime Minister Andy Burnham told ministers his government would focus on reducing the cost of living during his first Cabinet meeting on Tuesday. He announced that VAT on household electricity bills will be scrapped from October, saving a typical household about £45 a year. The government said the measure will be funded by ending the proposed digital ID scheme. Opposition parties welcomed lower energy bills but questioned how the policy would be financed. Burnham also promised that future policies would be fully funded, saying the government would clearly explain how every major spending decision would be paid for. (PC: BBC)

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