Burnham announces £850m tax cut on energy bills but faces questions over funding
- Posted on July 21, 2026
- By Evening Standard
- 1 Views
- 1 min read
In brief
Chancellor Burnham unveils a substantial £850 million energy relief package designed to ease household bills through VAT reduction initiatives. The government proposes financing this support by discontinuing the digital identity card project. However, the proposal faces scrutiny from political figures, including ex-minister Darren Jones, who questions the viability of the funding mechanism, arguing the abandoned digital ID scheme itself lacked proper financial backing and may not provide adequate resources for the promised tax relief.
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Burnham announces £850m tax cut on energy bills but faces questions over funding
The VAT reduction will be paid for by scrapping the digital ID card scheme, but former minister Darren Jones said that project was unfunded.
