VAT on electricity and gas bills will be temporarily reduced to 9% as part of a new set of measures to reduce the cost of living to tackle the current energy crisis.
As electricity and fuel bills soared, government leaders held emergency talks to discuss the crisis where they decided on a temporary cut.
They have received an official analysis showing that they can reduce the current 13.5% VAT rate on electricity and gas without being in breach of EU tax rules.
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