Local Labour politicians welcome scrapping VAT on electric bills
Labour politicians in Northumberland have welcomed new Prime Minister Andy Burnham’s decision to remove VAT on electricity bills.
The new PM says the tax cut – around £45 for the average home from October 1 – will give households a "breathing space” this winter.
This is on top of the £150 removed from bills at the last Budget and the Government says it is aiming to help keep inflation down with the move.
Ministers say it will be funded by scrapping the planned national Digital ID programme.
Cramlington and Killingworth MP Emma Foody has welcomed the announcement saying it will provide welcome relief to local people.
She said: “I’m really pleased to see the new Prime Minister kick of his term in office with action like this.
"Removing VAT from electricity bills will make a real difference for working people and families.”
She added: “If this is what this new Government is doing on Day One, I can’t wait to see what is coming down the tracks.”
Cllr Scott Dickinson, Labour leader on Northumberland County Council, said: “This government is firmly on the side of families in Northumberland.
"That’s what this cut is all about - a real help with the cost of living.”
He added: “We know people in Northumberland are hungry for change – and there is much more to come in the coming weeks.
"We know that under Andy Burnham Labour has to show it can deliver, and that’s exactly what we will do.”
The Government says all are expected to pass the VAT reduction on to all customers, including those on fixed tariffs, as they did with the costs taken off energy bills at the last Budget.
Mr Burnham said: “Westminster has not been working for people for too long, with families struggling with the cost of living.
“That needs to change. 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.”
Hexham MP Joe Morris said: “The cost-of-living crisis is hitting people hard and they will welcome some relief in their energy bills arriving immediately.
“Andy Burnham promised to address the real issues of this country, not discuss what has caused them. This is evidence from day one that he meant it”
Energy bills have risen since Russia’s invasion of Ukraine and have been exacerbated because of the war in Iran.