READING Central MP Matt Rodda has welcomed the announcement by the new Prime Minister which will see tax cuts on household bills.
It comes as the new PM, Andy Burnham, said he would cut VAT on electricity bills for homes in his first week in the job.
Reading Central MP, Matt Rodda, has welcomed the announcement, saying it will ‘make a real difference’ to people in Reading.
Cutting VAT on electricity bills is hoped to take around £45 off the yearly Ofgem price cap in October.
It follows the £150 removed from bills at the last Budget.
Suppliers are expected to pass the VAT reduction on to all customers, including those on fixed tariffs, as they did with the £150 of costs taken off energy bills announced at the last Budget.
Small businesses who qualify for the domestic energy VAT relief and are not registered for VAT, as well as charities and residential care homes eligible for the reduced rate will also benefit.
Mr Rodda said: “I am delighted that the Government is providing this extra help for residents and it will make a real difference to people in Reading.
“Residents have been hit hard by the cost of living crisis, we have a large number of older houses which are more expensive to heat and I am glad the Government is able to offer this help.”
Prime Minister Andy 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.”
