Rachel Reeves’s 5% VAT cut on electricity bills will backfire, experts say

<p>Critics believe cut would mostly benefit better-off people with larger homes and increase carbon emissions</p><p>Proposals being considered by Rachel Reeves <a href="https://www.bbc.co.uk/news/articles/cdjrg4vylzko">to cut tax on electricity bills</a> will backfire, experts have warned, resulting in a giveaway to richer homeowners and undermining the UK’s climate commitments.</p><p>The chancellor is understood to be looking at plans to eliminate the 5% VAT charge on electricity bills as a fast and simple way to reduce bills for consumers and ease the cost of living pressures that have aided the rise of Reform UK.</p> <a href="https://www.theguardian.com/uk-news/2025/nov/02/rachel-reevess-5-vat-cut-on-electricity-bills-will-backfire-experts-say">Continue reading...</a>