Households all across the UK will benefit from immediate action to help with their electricity bills this Winter, the Prime Minister has announced as one of his first decisions in office.
This follows his commitment to the nation on the steps of Downing Street earlier this week (Monday) to give people some breathing space and help with the cost of living.
Government is tackling rising bills with a tax cut to remove 5% VAT from domestic electricity bills from 1st October in time to impact the next Ofgem price cap. This immediate action applies and is funded for this financial year.
The cost of this immediate action for this financial year – taken now, before the next price cap – is being funded from the cancellation of the £1.8billion Digital ID programme.
The move will mean households across the Isle of Wight saving £45 each – £3.4million across the Island.
Any further action, including on funding for longer-term measures, will be taken at the Budget alongside an OBR forecast. All decisions at that point will continue to be funded and also consistent with the government’s fiscal rules.
Prime Minister Andy Burnham said:
“Westminster has not been working for people for too long, with families struggling with the cost of living.
Article continues below this advertisement “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.”
Labour’s Cllr Jock Rafferty said:
“This government is firmly on the side of Island families. That’s what this cut is all about – real help with the cost of living.
“We know people on the Isle of Wight are hungry for change – and there is much more to come in the coming weeks. Under Andy Burnham Labour has to show it can deliver, and that’s exactly what we will do.”
A new liebour party leader, no mandate, no idea.