Move is expected to save households around £45 a year in effort to tackle cost of living Burnham to cut VAT on electricity bills in first cost-of-living move Good morning and welcome to our live coverage of UK politics. Andy Burnham has announced an £850m tax cut on electricity bills to help ease cost of living pressures in his first significant policy announcement as prime minister. It means that electricity bills will be reduced by an average of £45 a year from October. Downing Street said the move will be partly funded by scrapping Keir Starmer’s digital ID scheme, which would have cost an estimated £1.8bn over three years. Good news that VAT will be cut on electricity bills. It’s a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lo