London, United Kingdom. The government of new British Prime Minister Andy Burnham plans to remove value-added tax from domestic electricity bills from October 1 as part of efforts to address the cost-of-living crisis.
The measure will be funded this financial year through the cancellation of the government’s £1.8 billion ($2.42 billion) digital ID programme, Downing Street said on Tuesday.
Digital ID programme cancelled
Burnham’s office had previously said that scrapping plans for a digital ID scheme would be among his first actions as Britain’s next leader.
The programme would have required all employees to hold a digital identity document. It was designed to tackle illegal migration but was described as a “fiasco” by a cross-party committee of lawmakers.
Cost-of-living focus
Burnham has said he wants to move quickly to demonstrate that British politics can improve living standards after years of stagnation.
“Westminster has not been working for people for too long, with families struggling with the cost of living,” Burnham said.
