Electricity: VAT
(asked on 28th August 2026) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the cost to the Exchequer of removing VAT from domestic electricity bills in 2026-27.
This question was answered on 8th September 2026
The Government’s recent announcement to cut VAT on electricity bills applies and is funded from 1st October 2026 to 31st March 2027.
Tax decisions will be taken at the Budget alongside an Office for Budget Responsibility (OBR) forecast. All decisions will be funded and consistent with the government’s fiscal rules.
The OBR publishes a log of substantive contact made between ministers, special advisers, private office and opposition MPs and the OBR on its website.