He probably hasn’t even found out where the teabags are yet, but chancellor John Healey has announced a VAT cut to home electricity in his first hours of his new job alongside prime minister Andy Burnham. 

Although cut probably doesn’t cover it – it’s actually a cancellation of VAT on home electricity with the rate going from 5% on domestic supplies to 0%, a move the government hopes will save households £45 a year on their bills.

Announcing the move, the prime minister explained: "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."

The chancellor said the VAT cut would help families, as well as reducing overall inflation: "Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter."

It’s all part of an initiative by new PM Andy Burnham to lower the cost of living, but crucially it will serve to widen the already huge gap between electric vehicle owners who only have access to public charge points versus those with their own off-street parking and home charge points. Former chancellor Rachel Reeves ruled out a VAT cut just months ago.

Public charging is subject to 20% VAT rates, which makes it significantly more expensive. Nearly 20% of drivers in our latest Electrifying/AA survey were worried about the high costs of public charging. 

Gridserve CEO Daniel Kunkel told Electrifying in an interview at the company’s official opening at its new Markham Vale charge hub that he was advocating for lower VAT on public charging, saying that the gap “doesn’t feel right to us”. 

Electrifying founder Ginny Buckley has long been campaigning for the gap between home and public charging to be closed: “Government research shows around a third of UK households don’t have off-street parking, meaning millions of drivers will depend on public charging. Yet they’re the ones paying the highest price – it simply isn’t fair.”