Electricity: VAT
The question
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.
Answered by Treasury
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.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →