Burnham cuts VAT on household electricity bills; UK borrows less than expected in June – business live
Rolling coverage of the latest economic and financial news Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. New prime minister Andy Burnham has announced this morning that VAT will be cut from...
UK Prime Minister Andy Burnham has announced a cut to VAT on household electricity bills, framing the move as part of a wider effort to ease pressure on families facing a rising cost of living.
According to a monitored public feed from The Guardian’s business live coverage, Burnham said the government had not been working for people for too long and argued that households needed “breathing space”. He said the VAT reduction would be part of his second day in office, presenting it as an early signal of his economic priorities.
The announcement comes alongside a renewed emphasis on fiscal discipline. In remarks quoted in the feed, Burnham said fiscal control is the first duty of a chancellor and described fiscal credibility as the foundation of economic stability and national security. He also said the government would keep to its defence commitments to international allies in what he described as a more dangerous world.
The same live coverage also pointed to another development in the public finances, with UK borrowing in June coming in below expectations. The feed did not provide a figure, but it said the result was better than economists had forecast, offering some support to the government’s argument that it can act on living costs while maintaining discipline over the public finances.
The business live report indicated that the day’s broader economic agenda also includes official labour market figures and public finances data from the Office for National Statistics. Those releases are likely to be watched closely for signs of how the economy is performing and whether pressure on household budgets is easing.
Burnham’s VAT announcement places cost-of-living policy at the centre of his early tenure, while the borrowing data gives ministers a more favourable backdrop than many had expected. The combination may help the government argue that immediate relief for households can be paired with a commitment to financial restraint.
This article is based on a monitored public feed and includes attribution to The Guardian Business.
Source: The Guardian Business - https://www.theguardian.com/global/live/2026/jul/21/burnham-cuts-vat-electricity-bills-uk-borrowing-debt-economy-news-latest
