The British government has launched a plan to reduce living costs, with the aim of cutting energy bills

British new Prime Minister Barnham launched a policy plan on Tuesday (July 21st) to reduce people's living costs, which includes the intention to abolish the value-added tax in household electricity bills.

AFP reported that Burnham said the government would abolish the value-added tax from October in electricity bills. This policy is expected to reduce about 850 million pounds in tax revenue for the British government this fiscal year.

Burnham said in the statement: "We are taking immediate action to reduce the tax on energy bills, so that people will have more money in their pockets."

The British government stated that this measure would save an average of approximately £45 per household each year. "This will benefit the poorest families as their expenditure on energy constitutes a higher proportion of their income."

This measure is expected to be implemented in October, coinciding with the increase in electricity and gas price caps by the UK energy regulator. This energy price hike is related to the conflict between the United States and Iran.

Burnham also said that he hopes to alleviate the pressure faced by small businesses. These businesses had previously been affected by the tax-raising policies of the previous Labour government.

Burnham also promised to adhere to the strict fiscal discipline implemented during the Stammer government, which meant ensuring that government tax revenues were balanced with daily public expenditures.

Official data released by the UK's National Statistics Office on Tuesday showed that the net borrowing of the public sector in June was 16 billion pounds, a decrease of one-third compared to the previous year; the unemployment rate remained at 4.9%.

The British financial markets remained stable overall on Tuesday.

Burnham's long-term goal is to promote "reindustrialization" in the UK and to build large-scale public housing.

Although the Labour Party has been in power for two years, the British economy has failed to achieve strong growth. However, the International Monetary Fund predicts that this year, the UK economy will grow at a rate higher than that of other major economies.