Burnham VAT cut exposes ‘madness’ of post-Brexit rules, says Stormont minister

Northern Ireland’s exemption from Andy Burnham’s tax cut on electricity bills shows the “madness” of the region’s relationship with the EU, a Stormont minister has said.In his first significant policy as Prime Minister, Mr Burnham announced an £850 million tax cut on energy bills to help ease the cost-of-living crisis.From October 1, electricity bills will be VAT free in England, Scotland and Wales, saving households about £45 a year the Government has said.Because of post-Brexit rules under the Windsor Framework, EU VAT rates apply on electricity bills in Northern Ireland so the cut will not apply.It is planned that the Stormont executive will be given funding to implement an equivalent level of support.DUP Communities Minister Gordon Lyons said the Government has been “far too willing to do the EU’s work, and we haven’t seen what we need to see in terms of the repair of the damage done to that relationship between Northern Ireland and the rest of the UK”.He told BBC Ulster’s Nolan Programme: “We need to see the Government very clear on that, that they recognise the issues.“I don’t think you see this anywhere more clearly than the issue that has come up this morning, where you have the UK Government wanting to reduce VAT on UK household bills, and because of the rules that have been put in place by the EU, we’re unable to do that in Northern Ireland.”Mr Lyons also called for the funding to be implemented directly via a derogation from the EU as a “far more preferable way of ensuring that people in Northern Ireland get this additional bit of support”.He said the Government deciding to allow Stormont to administer the scheme rather than achieve agreement with the EU showed they feel “that’s hassle, that’s difficulty, so instead of that, we’re just going to throw it over to the executive instead”.Read MoreHe added: “That shows the madness of some of the rules that we have in place.“I would ask the question what possible harm or difficulty would that cause the EU? What harm or difficulty would that cause the operation of the single market?“That goes to the heart of the problems that we are facing, it’s that rules were put in place that are not in any way sensible.“They’re not about protecting people from the changes that came about as a result of Brexit, but they seem to be adding in additional difficulties.”Mr Burnham has also scrapped the previous government’s plans for a digital ID scheme and pledged to build more council housing, with Mr Lyons saying the former Manchester mayor “has taken on some DUP policies”.“I’m quite happy with that,” he said.“But there are many other issues on welfare, on how we support business, on how we reward those who work hard, all of those issues need to be dealt with as well.“There have been some good words, I understand that rhetoric needs to turn into results.”Following the appointment, TUV leader Jim Allister described new Northern Ireland Secretary Sir Chris Bryant as an “EU fanatic” on X, adding that he has “little expectation” he will advocate for Northern Ireland “against EU colonialism”.Sir Chris replied: “Jim I look forward to working with you for a strong Northern Ireland in a strong United Kingdom.”DUP leader Gavin Robinson speaking to the media at CS Lewis Square in Belfast, after Sir Chris Bryant was appointed as Secretary of State for Northern Ireland. Picture date: Tuesday July 21, 2026.PA WireSpeaking to reporters in East Belfast, DUP leader Gavin Robinson conceded Sir Chris is “very favourable toward the European Union”.He said: “We need to have an arrangement with our Government that ensures we are not at a detriment to other parts of this United Kingdom.“And to put it in stark terms, look today about the Government’s decision to remove VAT from some of the utility bills that people face – that’s a good thing.“But in Northern Ireland, they’re going to have to transfer the cash rather than just give us the straight VAT decision.“Why is that? Because they need the European Union’s agreement, and it seems as if we have a Government that’s not even prepared to ask.“What does that say about their reset of relationships, if they’re not able to pass on the same VAT reduction on the same terms as the rest of the United Kingdom?”