Lillian Jones, Member of Parliament for Kilmarnock and Loudoun, has welcomed the new UK Government’s announcement to scrap the five per cent VAT on domestic electricity bills.
Immediate Tax Cut
New prime minister, Andy Burnham, said he was implementing an immediate tax cut to help ease cost of living pressures for households in Britain. The tax cut will take effect on October 1 and the policy aims to provide immediate breathing space for millions of households facing intense cost-of-living pressures.
The new PM said: “I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as prime minister. We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”
Savings for Households
Scrapping the five per cent VAT rate will save the average household around £45 per year on their electricity bills. Ms Jones, MP for Kilmarnock and Loudoun, said: “I know the financial pressure many people are facing across Kilmarnock and Loudoun, which is why I am really pleased by this announcement. Stripping VAT from electricity bills from October is yet another way Labour is supporting people with the cost of living. Coming on top of the £150 reduction in bills at the budget, this shows the direction our new Prime Minister Andy Burnham is taking, leading a government focused on lowering the cost of living.”
The government has confirmed that the tax reduction will apply automatically to all household electricity bills starting this October, meaning consumers do not need to take any action to receive the discount.
