Chancellor John Healey has announced an extension of the VAT cut on electricity bills until July, providing further relief to households as energy costs rise. The measure, confirmed in the Commons, will reduce the annual energy price cap by £50.
VAT cut extended through winter and spring
Speaking in the House of Commons, Healey said: “In the first week of this new Government, we took VAT off electricity for 29 million households, today I’m extending that VAT cut through the winter and spring to July, taking £50 off the annual price cap.”
Support for businesses
For businesses, the Chancellor outlined a new initiative under the British industrial competitiveness scheme. He stated: “For business, our new British industrial competitiveness scheme will take 25% off electricity bills for 10,000 firms at the heart of British industry. It will go live in April, and I confirm that we will make backdated payments for energy costs this year too.”
The scheme is set to begin in April, with backdated payments for energy costs also confirmed for this year.
