New UK prime minister cancels VAT on electricity bills
The UK government will cancel VAT on electricity bills for households starting October 1.
This was announced by the office of the country's prime minister, Andy Burnham.
It is noted that the authorities will be able to cancel VAT by abandoning the plans of the previous government to introduce digital identity cards, which were estimated at £1.8 billion ($2.4 billion). It is assumed that thanks to the new measure, households will be able to save about £45 ($60) per year. Currently, VAT on electricity bills is 5%.
Burnham's office indicated that the new measure will reduce inflation in the United Kingdom by 0.1%. The cancellation of VAT on electricity bills became the first decision of the new government in the field of economics.
Burnham took the post of prime minister on July 20. He replaced Keir Starmer, who was forced to resign under pressure from deputies of the ruling Labour Party against the backdrop of its defeat in the local elections held in May.
