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Chancellor Considers VAT Cut to Ease Energy Bills

10/19/2025

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Story summary
  • Ed Miliband, Labour MP for Doncaster North, said Chancellor Rachel Reeves may cut VAT on energy bills in her Budget.
  • The VAT cut could save households around £86 a year but would cost the Treasury about £1.75 billion.
  • Energy bills remain high due to green levies and reliance on fossil fuels.
  • Alternatives include reducing standing charges or shifting policy costs to general taxation.