Brits Get a 5% VAT Cut on Energy Bills — The Changelog That Could Save Your Wallet
What’s the Big Deal?
On 27 October, the Financial Times tipped that Rishi Sunak might slash VAT by 5 % on energy bills. With winter heating costs hitting a fever pitch thanks to sky‑high gas prices, that could feel like a breath of fresh air for families and small businesses alike.
Why It Matters
- Feels Like “We’re Listening” – It sends a strong message that the government cares about ordinary citizens.
- Reminds Us of Brexit Wins – Dropping the tax is a nod to the success of leaving the EU, showing that some benefits are still on the table.
- Doorstep Relief – Every pound a taxpayer saves on their heating bill is money that can sit in the bottom drawer or be spent on a holiday.
What the Treasury Says
While the Treasury will forgo about £1.5 bn in extra revenue, a senior official argued that the political goodwill far outweighs the shortfall. “It ticks two boxes,” he said – a delight for the public and a reminder that the government’s ear is set on the people’s pleas.
There’s More to the Story
Andy Mayer from the Institute of Economic Affairs argues that this cut is just the tip of the iceberg. “If we can audit and trim those extra social and environmental charges that pile onto energy bills, the savings become really tangible,” he muses.
So, while the fiscal return may look a bit slimmer, the practical lift on everyday living costs is a win for the average Brit.
