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I guess that is how quickly things can unravel in Westminster. From earlier: UK prime minister Burnham announces VAT cut from energy bills to bring down cost of living As mentioned in the announcement earlier, the policy cost of cutting VAT from energy bills would be around £850 million. And it was reported that it will be funded through the now cancelled digital ID scheme, which was estimated to cost approximately £1.8 billion over the coming years. However, UK lawmaker Darren Jones is now out to dispute that notion in saying that the digital ID scheme was in fact unfunded in the first place. The infighting looks to already begin after just one day. Good stuff. "Good news that VAT will be cut on electricity bills. It’s a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lower. But the Digital ID program was unfunded. The government will have to set out how it will pay for its new policies at the budget." So, where is the money going to be coming from? This will be a big question for Burnham so early on in his tenure, as he has to underline where the money will come from in trying to lower energy bills as mentioned. If proven true, it also breaks the promises and manifesto that Burnham was selling en route to taking his seat on Downing Street. The gilts market is still reacting calmly for now but fiscal worries look to be back on the menu in the UK. This article was written by Justin Low at investinglive.com.
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Original Source: InvestingLive News
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