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

The GuardianSunday, November 2, 2025 at 4:58:10 PM
Rachel Reeves’s 5% VAT cut on electricity bills will backfire, experts say
Experts are warning that Rachel Reeves's proposal to cut the 5% VAT on electricity bills could backfire, primarily benefiting wealthier homeowners while potentially increasing carbon emissions. This move raises concerns about its impact on the UK's climate commitments, as critics argue that it may not effectively support those who need it most. The discussion around this tax cut highlights the ongoing debate about balancing financial relief with environmental responsibilities.
— Curated by the World Pulse Now AI Editorial System

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