VAT cut ‘proposed by Downing Street to ease cost of living squeeze’

Downing Street is working on plans to cut VAT in a bid to ease the cost of living burden on struggling British households, reports suggest.

The Times reported on Thursday that No 10’s chief of staff Steve Barclay had suggested the temporary reduction in the 20 per cent rate of tax in the hope of easing tax bills for millions and blunting the spiralling rate of inflation.

It comes after modelling from the Office for National Statistics (ONS) revealed that the rate of inflation in the UK, at 9.1 per cent, had reached its highest point since at least February 1982.