Prime Minister Andy Burnham has announced that VAT has been removed from electricity bills, a move he says will save households about £45 over the year and provide "a bit of breathing room" this winter.
Writing for Metro, Burnham said he is determined to bring energy costs down for good over time, but acknowledged that families need help now. Alongside the VAT cut, he highlighted measures including capping bus fares at £2, banning rip-off discounts, ending subscription traps, tackling the cost of school uniforms, and cutting business rates for pubs, social clubs and music venues.
Why energy costs are high
Burnham said he wants to be honest about how Britain arrived at a point where billpayers are paying some of the highest energy costs in Europe. Over the past 40 years, he said, the country has "given up control of our necessities, outsourced our essentials and privatised the basics" — water, transport, housing and energy.
He said the public are now paying the price, with a lack of investment in infrastructure and conflict overseas pushing up energy costs and hurting businesses and families.
Greater public control
To address this, Burnham announced the Great British Grid, which he said will speed up connections and push down bills. He also said mayors, local leaders and communities will be given a stronger role, with funding for People's Power projects enabling communities to build solar panels on libraries and town halls, hydro schemes in rivers or publicly owned windfarms on local land.
Beyond energy, Burnham said there is a need for stronger public control over water, housing, transport and care. He said the ban on public ownership of water companies is being repealed, and more council homes are being built than at any time since the end of World War Two.
Leasehold reform and care
Burnham also said the leasehold system is being reformed so families aren't squeezed for every penny, and home ownership is being opened up for first-time buyers who can't rely on the bank of mum and dad.
He announced his determination to introduce a National Care Service, to put people above profit and give pensioners peace of mind. He concluded that together, the country will be "rewired" from top to bottom so that it works for all people in all places — the only way, he said, to put Britain back on the right path and bring hope again.
