News / Housing

What do Burnham’s VAT cuts mean for Bristol?

By Karen Johnson  Monday Jul 27, 2026

Households across Bristol could save over £9,000 under Andy Burnham’s new plans for VAT cuts on domestic electricity bills.

Burnham said his move to remove VAT was aimed at putting “more money” in people’s pockets and bringing back “hope”.

The nationwide initiative has been funded through the cancellation of the Digital ID programme, which was expected to cost the government £1.8 billion.

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Bristol has a total of 208,195 houses as per ONS data from 2024 – photo: Betty Woolerton

Announcing the cuts, Burnham said: “Westminster has not been working for people for too long, with families struggling with the cost of living.

“That needs to change. I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as Prime Minister.

“We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”

After Burnham’s plans to cut VAT from 5 per cent to 0 per cent, households are expected to save an estimated £45 on their domestic bills from October 1.

Bristol, according to ONS data from 2024, has a total of 208,195 which will mean an approximate savings of £9,368,775 across the area.

Labour leader for Bristol and councillor for Horfield, Tom Renhard said the Burnham government was “firmly on the side of families”.

Initiatives like retaining a 100 per cent council tax discount for the city’s most vulnerable households and mayor Helen Godwin’s Kids Go Free scheme, he explained, have helped in battling the cost-of-living crisis in Bristol.

He added: “We know people in Bristol are hungry for change – and there is much more to come in the coming weeks.

“We know that under Andy Burnham Labour has to show it can deliver, and that’s exactly what we will do.”

Main photo: Andy Burnham 

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