Andy Burnham has already confirmed two motoring updates just days into his tenure as Prime Minister, with massive savings announced.
Andy Burnham has already confirmed two major motoring updates (Image: Getty)
Andy Burnham has been Prime Minister for just over one week, but the new Labour leader has already introduced two major policies that will have a major impact on UK roads. Thousands of electric car owners are set to benefit from tax cuts under radical VAT updates, while travellers will also be able to take advantage of cheaper bus tickets.
First, Mr Burnham committed to cutting VAT rates on domestic electricity supplies less than 24 hours after stepping into Downing Street. The move will see billpayers charged 0% VAT on their electricity usage instead of the current 5%.
Electric car owners could benefit from lower domestic VAT rates (Image: Getty)
Although designed to help households cut costs, the move will help thousands of two million electric car owners in the UK who top-up their vehicles at home. Experts at Andersen EV explained that electric car owners could save around £25 per year when the new rates come into effect in October, with higher-mileage road users more likely to save up to £40.
The tax discounts could be even more impressive, with Carwow suggesting that electric car owners fully charging their battery at home once per week could save as much as £65 per annum.
After making the announcement on VAT, Prime Minister Andy 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.”
The motoring updates don’t end there, with Mr Burnham also confirming that bus tickets would be cut with a third set to be taken off fares.
Bus tickets will fall to £2 from January (Image: Getty)
Backed by £400 million in extra funding, bus tickets will be capped at just £2 across the UK, down from £3. Officials said the new rule will particularly help passengers living in rural and coastal areas when the updates come into effect on January 1, 2027.
Mr Burnham said: “But for too long people have said that cheaper transport isn’t an option. I don’t accept that. I’ve done it before and I will do it again now: a £2 cap on bus fares for millions across the country.
“Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living.”
