STARMER ALLY ATTACKS BURNHAM TAX CUT PLAN – Ally says Burnham’s proposal to cut VAT on electricity bills is unfunded
Andy Burnham’s plan to cut VAT on electricity bills has descended into farce after Sir Keir Starmer’s closest ally claimed the policy was unfunded.
The Prime Minister used the start of his second day in No 10 to announce that he would remove the levy on domestic bills from Oct 1.
He said he would fund the tax cut, which will cost £850m in 2026/27, with savings from Sir Keir’s abandoned digital ID scheme.
But Darren Jones, the now former cabinet minister who oversaw the policy, said the scheme was “unfunded”, adding: “The Government will have to set out how it will pay for its new policies at the Budget.”
The digital ID plan, which Mr Burnham announced he would scrap at the weekend, was going to cost £1.8bn over three years. But the Institute for Government said this week that Sir Keir had failed to identify any specific savings to fund the programme.
Kemi Badenoch, the Tory leader, said: “It’s only one day into Burnham’s government and already the explanations are falling apart. You can’t use the funding from an unfunded programme to pay for cheaper bills.”
Robert Jenrick, Reform’s Treasury spokesman, said: “Burnham’s numbers don’t add up.”
