Josh MacAlister MP has welcomed the first announcements from the new government, saying they will provide practical help with the cost of living for households and businesses across Cumbria.
The government has announced that VAT will be removed from domestic electricity bills between 1 October 2026 and 31 March 2027. The measure will benefit every household and is expected to reduce the annual Ofgem price cap by around £45. Eligible care homes, charities and smaller businesses will also benefit. This comes on top of the £150 already removed from all household energy bills this year and the expansion of the Warm Home Discount, which will see one third of all homes in West Cumbria see an extra £150 taken off their energy bills this winter.
From January 2027, the maximum price of a single bus journey will also be reduced to £2 for the remainder of the year, helping people travel more affordably to work, education, health appointments and to see friends and family. This comes alongside free travel on local buses throughout August for children aged between five and 15.
The government has also announced a further 20 per cent reduction in business rates for pubs, social clubs and live music venues from April 2027. Around 32,000 venues nationally are expected to benefit, with the typical pub saving an estimated £1,100 next year.
Josh said the announcements would be particularly important in Cumbria, where families face cold winters and long journeys, while pubs and community venues play a vital role in bringing people together.
Josh said:
“People across West Cumbria have told me repeatedly that they need the government to focus relentlessly on the cost of everyday life. The new government has listened and started delivering practical help within its first few days.
“Removing VAT from electricity bills will help every household this winter. It will also benefit eligible care homes, charities and small businesses at a time when energy costs remain a real concern.
“The £2 bus fare cap is especially important for Cumbria. In a county of towns, villages and rural communities, buses are often a lifeline – connecting people with work, college, hospital appointments, shops and their families.
“Our pubs, clubs and music venues are also much more than businesses. They support local jobs, bring people together and help keep towns and villages in West Cumbria vibrant. Cutting their business rates will give them valuable additional support.
“These announcements show the government’s determination to give people some immediate breathing space. There is much more to do, and I will continue working to ensure West Cumbria receives its fair share of investment and support.”
Josh MacAlister MP 