Story perspectives

Chancellor Weighs VAT Cut to Alleviate Energy Costs

9/14/2025

23 5

Summary

Story summary

Chancellor Rachel Reeves is considering a VAT cut on energy bills for the Autumn Budget on November 26.
The current VAT rate on domestic energy in the UK is five percent.
The proposed cut aims to ease the cost of living, potentially saving households £86 annually and costing the Treasury £1.75 billion.
Energy Secretary Ed Miliband is exploring options to improve energy savings.
The Chancellor is under pressure to address a £41 billion financial shortfall.

1 of 1

Story summary

Chancellor Rachel Reeves is considering a VAT cut on energy bills for the Autumn Budget on November 26.
The current VAT rate on domestic energy in the UK is five percent.
The proposed cut aims to ease the cost of living, potentially saving households £86 annually and costing the Treasury £1.75 billion.
Energy Secretary Ed Miliband is exploring options to improve energy savings.
The Chancellor is under pressure to address a £41 billion financial shortfall.