Andy Burnham is facing a Labour backlash on his first day in Number 10 over his “unfunded” move to cut 5% from the VAT on energy bills after a sacked minister pointed out there was no money for it. The Mail has the story.
The new PM has unveiled a sweetener of 5% off electricity bills from October, insisting it can give families “breathing room”.
The Government claims the £850 million to pay for the measure is being found by axing the ID cards scheme.
However, Darren Jones – who was brutally sacked from the Cabinet in Burnham’s purge of Starmer loyalists yesterday – warned this morning that no funding had been earmarked for that policy.
As a result new Chancellor John Healey faces having to find the cash at the Budget, heaping more pressure on the public finances.
Experts also said the estimated £45 benefit of the proposal for households will be swamped by surging energy prices, with the Iran war threatening to escalate once again. Currently Ofgem’s cap is projected to rise £60 in October.
Ironically Burnham – who until this summer advocated rejoining the EU – can only tweak VAT on energy because Britain is no longer in the bloc. It cannot be applied in Northern Ireland, which is subject to the rates dictated by Brussels.
The manoeuvring comes amid mounting questions over how Burnham will pay for expensive pledges in a lurch to the Left.
They include a commitment to the biggest council house building programme in history, to be overseen by Angela Rayner, as well as a national social care service.
Worth reading in full.
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I wonder how he’s going to arrange the fantasy 5% off VAT on electricity bills in Northern Ireland.
The EU effectively controls NI and will block it, And the Cock of the North wants to extend that to the whole of the UK by aligning so closely that we will effectively be a member.
I’m sure the “forensic and oh-so-impartial Burnham Broadcasting Corp or Cock of the North News (aka Sky News) will be asking him that very important question.
The removal of 5% VAT from electricity bills is just silly, performative nonsense. It also doesn’t apply to the millions across the more remote parts of the country who rely on heating oil or calor gas and who still have to pay the 5%. Hope in every post code, my ar*e !
Talk about leaving the fox in charge of the chickens,..Angela Rayner bounded back into the cabinet with all the decorum and dignity of a “dog in a sausage factory!”
Perhaps she’ll bring back the sausages? Starmer didn’t.
It’s alright, don’t panic. There’s £22 billion in the biscuit tin in the sideboard, waiting to be used for carbon capture. Just use a bit of that & top it up later..
Got a feeling that Andy’s going to run into this problem quite bit over the coming weeks. Until someone finally admits the cupboard’s bare.
Isn’t it part of the “back to the 70s” plan? The more he spends, the quicker we get to the IMF bailout part.
I don’t think the IMF has the money to bail us out.
They’ll just print more… exasperating the problem even more long term…
It doesn’t.
Who was Chancellor when we went begging to the IMF ?
And today’s Chancellor is ?
We all know how the Uniparty like to play games with us.
Nadine Dories used a Civil Service phrase ‘drinking out of a fire hose’ to describe how life is now for Burnham and gives him until May. That would be local election time and if we don’t sign up to his ‘national sense of unity’ bullshit – why would I when he will double my property tax and make my life worse – then Labour will get a second hammering.
So if a robber doesn’t rob someone, that’s “unfunded”?
Tax reductions are “funded” by reducing spending by the same amount.
I’m all for tax cuts.
In general, I think the route to getting rid of the welfare state is to start by cutting (or eliminating) taxes for the lowest income groups while reducing their welfare.
Or borrowing more.
And/or printing money.