Finance Minister Reeves announced a 5% reduction in VAT during summer holidays as part of measures to support the cost of living. The minister said the plans would include tax increases on global oil companies to help cover costs, and confirmed that fuel tax increases have been postponed.
This is the first good news from the government in months. The constant removal of energy subsidies and the prospect of tax increases have finally brought a smile to the public’s face.
Of course, the question immediately arises: If you were in a position to implement the reduction, why didn’t you do it before the local elections? Did you wait for a historic defeat, for public anger, for ReformUK to be overwhelmingly in the lead?