Why Burnham’s energy VAT cut will make a difference

Mace Magazine | 25th July 2026 | Comment, Political Consultants
Cameron Brown
Cameron Brown

Cameron Brown, a former special advisor to the Chancellor of the Exchequer, explains why Burnham's VAT cut on energy bills is a measure people will actually notice.

Bar furlough, many of the cost of living measures we’ve seen in recent years have fallen on deaf ears - even the more expensive and impactful ones. Despite our best efforts in the Treasury, where I was a special advisor to the Chancellor during the COVID pandemic, cutting NICs was far less politically appealing than a simple cut to income tax would have been, even though slashing the 'jobs tax' is far more beneficial to low-to-middle income working households. Burnham's VAT cut on energy bills, however, is a measure people will actually notice. The saving is modest, obviously: roughly £4 a month from October. It also scales with consumption, so bigger (wealthier) homes get more cash back in nominal terms than smaller ones - a slightly awkward feature for a measure the government is selling as help for 'those who need it most'. It has a small, positive knock-on for headline inflation too, and - ironically - counts as a post-Brexit win (bar Northern Ireland). None of that nuance survives...

Subscribe to The Mace

Join the member community shaping British politics and stay ahead of what's really happening in the world of politics and public affairs, with expert analysis, breaking news, and insider insights from Westminster and Brussels. The Mace is the leading news source and resource for the government affairs industry, offering required reading and lobby intelligence for professionals.

To see what you are missing out on by not subscribing to The Mace, click here to download our full membership info-pack. This includes having no paywall on op-ed content or profiles/interviews, allowing professional profiles to be read with maximum impact and visibility by government, special advisers, MPs, peers, civil servants, and policy and political decision-makers.



The Mace guide to being a novice MP

Brooks Newmark | January 16, 2020

Still finding your way around the Palace? Not sure where to sit in the Chamber? Former minister Brooks Newmark is here to assist