Burnham cuts VAT from home electricity bills, public charging stays at 20%

Andy Burnham has confirmed that one of his first actions as Prime Minister is to cut VAT from home electricity bills, effective from 1st October.

The move will cut the cost of home electric vehicle (EV) charging, although VAT on public charging remains at 20%.

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.”

In February, a tax tribunal concluded that VAT on public charging should be brought in-line with home charging, with Deloitte and Charge My Street successfully arguing that up to 1000kWh of electricity supplied to a single person always counts as domestic.

HMRC has since appealed the ruling.

Figures across the industry said this discrepancy penalises those without driveways, further inflating the already higher cost of public EV charging.