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The UK may drop 5% VAT on energy bills, saving households up to £110 yearly, as part of Labour’s cost-of-living plan.
The UK government may eliminate the 5% VAT on energy bills ahead of the November Budget, potentially saving households £86 annually, according to Energy Secretary Ed Miliband.
The move, part of broader cost-of-living efforts, could save low-income families up to £110 yearly under a proposed tax shift, though it would cost £2.5 billion.
While no decision has been confirmed, the plan is under consideration amid fiscal constraints and pressure to fulfill Labour’s pledge to cut energy bills by £300 by 2030.
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El Reino Unido puede reducir el 5% del IVA en las facturas de energía, ahorrando a los hogares hasta £ 110 anuales, como parte del plan de costo de vida de los laboristas.