Electricity: VAT
The question
To ask the Chancellor of the Exchequer, what criteria will be used at the Autumn Budget to determine whether the VAT reduction on electricity bills should continue beyond the current financial year.
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.
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