Burnham removes VAT on household electricity bills

Electricity VAT Reduction·Latest event July 21, 2026

Jul 21

Burnham removes VAT on household electricity bills

The tax cut takes effect October 1 and aims to save households roughly £45 per year. This move follows reports that UK public sector borrowing fell to £16 billion in June. This figure was nearly £8 billion lower than the previous year. Burnham framed the removal of the value-added tax as a step to ease the cost-of-living burden. However, a former Downing Street official criticized the initiative shortly after the announcement. Burnham also appointed John Healey as finance minister to oversee the new energy bill strategy.

Burnham Cuts Taxes on Energy Bills to Ease Cost-of-Living BurdenBritain's new PM to cut taxes on electricity billsBurnham cuts VAT on household electricity bills; UK borrows less than expected in June - business live