Livingston constituency MP Gregor Poynton has welcomed Prime Minister Andy Burnham’s first major cost of living announcement, which will remove VAT from domestic electricity bills from October, helping households across West Lothian ahead of winter.
The new measure will remove the 5% VAT charge on household electricity bills for the remainder of this financial year. It is expected to reduce the annual Ofgem price cap by around £45, putting more money back into people’s pockets as energy costs remain high.
MP’s Statement
Mr Poynton said: “I’d like to congratulate Andy Burnham on becoming our Prime Minister. Andy takes office at a time when Britain is already moving in the right direction after two years of a UK Labour Government that has stabilised the economy, brought down inflation and interest rates, strengthened workers’ rights, delivered an extra £12bn for Scottish public services and started fixing the foundations after years of decline.
“Now the focus is on building on that progress by delivering good growth in every postcode and ensuring working people feel the benefits in their everyday lives.
“This announcement is an example of that approach. Families across West Lothian are still feeling the pressure of the cost of living, and while inflation has fallen significantly, many households continue to watch every penny.
“Removing VAT from electricity bills will put more money back into people’s pockets and provide some welcome breathing space ahead of winter.
“The Government has confirmed this measure will be funded this financial year through changes to existing spending priorities, while continuing to stick to its fiscal rules.
“That’s the responsible approach, supporting families with the cost of living while maintaining the economic stability that has been rebuilt over the past two years.
“This is about making sure people in the Livingston constituency and across the country benefit from the progress that has been made, and I look forward to working with the new Prime Minister as the Government continues delivering for communities across West Lothian.”
Implementation and Impact
The VAT cut will take effect from October 1, with energy suppliers expected to pass the full saving on to customers, including those on fixed tariffs. The Government estimates the measure will support millions of households across the UK with their energy bills this winter while making a small but positive contribution to reducing inflation.
