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Euronews
Euronews
Simon Ormiston

UK to remove 5% tax on electricity bills as Burnham holds first cabinet meeting

Andy Burnham has held his first cabinet meeting as UK prime minister, using his first full day in office to unveil an energy tax cut aimed at easing pressure on household finances while introducing a reshaped cabinet that signals a clear shift in Labour's direction.

The new prime minister announced that value-added tax (VAT) on domestic electricity bills will be abolished from 1 October, saving the average household around £45 (€52.73) a year. The measure is expected to cost the government about £850 million (€996m) in the current financial year, according to AFP.

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