Business
Ed Miliband hints at cut to VAT on energy bills
Becky MortonPolitical reporter
BBCThe government is looking at the possibility of cutting the rate of VAT on energy bills, Ed Miliband has suggested.
The energy secretary said he would not speculate ahead of the chancellor’s Budget in November.
But asked if the government would consider scrapping the 5% rate, he told the BBC the country was facing a “cost-of-living crisis that we need to address as a government” and “we’re looking at all of these issues”.
The government is under pressure to reduce household energy costs and before the election Labour pledged to lower average bills by £300 a year by 2030.
Miliband told the BBC’s Sunday with Laura Kuenssberg programme he stood by that promise but the reason bills were so high was “because of our dependence on fossil fuels”.
He added: “There is only one route to get bills down, which is to go for clean power, home-grown, clean energy, that we control, so we’re not at the behest of the petrol states and the dictators.”
Pressed over whether the government was considering scrapping the 5% VAT rate on energy bills in November’s Budget, Miliband said: “The whole of the government, including the chancellor, understand that we face an affordability crisis in this country.
“We face a cost-of-living crisis, a longstanding cost-of-living crisis, that we need to address as a government. We also face difficult fiscal circumstances… so obviously we’re looking at all of these issues.”
A Treasury spokesperson said: “We do not comment on speculation.”
Scrapping VAT on domestic energy bills would save the average household £86 per year and cost an estimated £2.5bn per year to implement, according to the charity Nesta.
There was a rapid spike in energy prices in 2021, following Russia’s invasion of Ukraine, and although costs have gone down, they have remained high by historical standards.
This month bills went up by 2% for millions of households, under the energy regulator Ofgem’s price cap.
It means a household using a typical amount of energy will pay £1,755 a year, up £35 a year on the previous cap.
Earlier this week Chancellor Rachel Reeves told the BBC she was planning “targeted action to deal with cost-of-living challenges” in her Budget next month.
The BBC understands this could also include reducing some of the regulatory levies currently added to energy bills.
Levies known as “policy costs” – which are used to fund environmental and social schemes such as subsidies for renewables – made up around 16% of the average electricity bill and 6% of the average gas bill last year.
Some energy bosses have argued green levies are partly to blame for rising bills and the government’s independent adviser, the Climate Change Committee, has long recommended removing policy costs from electricity bills to help people feel the benefits of net-zero transition.
Asked whether these could be funded through taxes rather than coming off energy bills, Miliband said: “That’s always a judgement for the chancellor, but let’s be honest we know we’ve got really difficult fiscal circumstances that we inherited… but absolutely we look at those things.”
He argued the government had to invest in “aging electricity infrastructure” but there needed to be a “balance between public expenditure and levies”.
The cost of household energy bills has become a major political battleground, with the Conservatives and Reform UK blaming net-zero policies for higher prices.
The Conservatives have said they would scrap the Climate Change Act, which legally requires the UK government to reduce emissions to net zero by 2050, as well as ditch carbon taxes on electricity generation and cut a funding scheme for renewables.
Shadow energy secretary Claire Coutinho said her party’s plans would cut electricity bills for everyone by 20%.
“[The public] care about climate change but what I don’t think they are signing up for is much higher bills and jobs being lost to countries abroad,” she told the BBC.
In an interview with the same programme, Green Party leader Zack Polanski argued nationalising energy companies would help cut costs for customers.
His party has also proposed a new tax on carbon emissions to drive fossil fuels out of the economy and raise money to invest in the green transition.
Challenged over whether businesses would simply pass on these costs to customers, Polanski rejected this and said the tax would be “vital for tackling the climate crisis”.
“What we need to be doing is finding other ways to support particularly small and local businesses… We know the big corporations are destroying our environment, our democracy and our communities,” he said.
“They can make a profit, sure, but this isn’t about squeezing out every single profit they can make.”
Business
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Business
India’s First Vande Bharat Sleeper To Run Between Patna And New Delhi: 1,000 Kms In 8 Hours, 160 Kmph Speed, Luxury Amenities – Reports
Delhi-Patna Vande Bharat Sleeper: Indian Railways passengers have been waiting eagerly for the new luxurious Vande Bharat Sleeper Express, which has been in the final stages of roll out and is being given final touches at the BEML factory. Passengers travelling between Patna and New Delhi are set to get a completely new travel experience as the much-awaited Vande Bharat Sleeper Train is expected to begin operations this month. The train promises the speed of Tejas, the comfort of Rajdhani, and the advanced technology of Vande Bharat — all in a sleeper configuration for the first time.
Designed for high-speed night travel, the train is being positioned as a premium option for long-distance passengers.
Trial Runs to Begin Soon
Two rakes of the Vande Bharat Sleeper Train are being manufactured at the BEML factory in Bengaluru. The first rake is expected to be ready and dispatched by December 12, after which trial runs will begin on the Patna–New Delhi route, reported Dainik Bhaskar. The train will cover around 1,000 kms in around eight hours.
Railways plan to start regular services before the New Year. The train is expected to run six days a week, departing Patna in the evening and arriving in Delhi the next morning. The return service will follow the same overnight schedule, reported Prabhat Khabar.
Speed and Performance Highlights
The train is designed to run at an operational speed of 160 km/h, with a maximum speed capability of 180 km/h. According to railway officials, the ride will be so stable that even tea kept in a cup will not spill while the train is running at full speed.
One of its key strengths is rapid acceleration and braking, allowing it to cover distances faster and reduce time spent stopping and restarting at stations.
Coach Composition and Seating Capacity
The Vande Bharat Sleeper Train will have 16 coaches with a total capacity of 827 passengers:
* 11 coaches of AC 3-tier (611 berths)
* 4 coaches of AC 2-tier (188 berths)
* 1 coach of AC 1st Class AC (24 berths)
Railways may increase the number of coaches in the future based on passenger demand. Ticket prices are expected to be around the fare of the Rajdhani Express.
Current Status of Vande Bharat Trains in India
At present, 164 chair-car Vande Bharat Express trains are operating across India. These semi-high-speed trains are manufactured at the Integral Coach Factory (ICF) in Chennai and have received strong passenger response.
Due to growing demand for comfortable long-distance night travel, the sleeper variant has been developed, with the Patna–Delhi route likely to be among the first to get this service.
What the Railway Minister Said
Union Railway Minister Ashwini Vaishnaw recently told the Lok Sabha that the sleeper version of the Vande Bharat train has been indigenously designed for medium and long-distance overnight journeys.
He said that two rakes have been produced and are currently undergoing trials and commissioning.
Key Features and Facilities in Vande Bharat Sleeper Train
The interior of the train is designed to provide a premium airline-like and hotel-style experience. Major facilities include:
Passenger Comfort Features
* USB-integrated reading lamps for night-time reading
* Real-time passenger information system with audio and video updates
* High-speed Wi-Fi and onboard infotainment system
* Modular pantry unit for freshly prepared onboard meals
* Touch-free bio-vacuum toilets
* Hot water shower facility in First AC coaches
* Ergonomic ladders for upper berths
* PRM-friendly berths and toilets for elderly and differently-abled passengers
Advanced Safety and Security Systems
* KAVACH anti-collision technology to prevent train accidents
* Integrated emergency talk-back units for direct communication with train crew
* Fully sealed gangways between coaches to prevent dust and enhance safety
* Automatic plug doors that close before departure
* CCTV surveillance in every coach to deter theft and ensure passenger safety
Timings of the Vande Bharat Sleeper Train
The train will run six days a week:
* Evening departure from Patna, Morning arrival in New Delhi
* Evening departure from New Delhi, Morning arrival in Patna
The Vande Bharat Sleeper has been specially designed to offer high speed, superior comfort, and a premium travel experience for overnight journeys.
Rebates paid by drugs firms to the NHS are being cut by more than a third next year following the recent tariff deal with the US.
The Government said the rebate costs for companies – the proportion of revenues from new branded medicine sales that drugs firms must pay back into the NHS – would fall to 14.5% in 2026 from 22.9% this year.
It comes after the UK-US tariff deal earlier this month, which will see zero tariffs on British pharmaceutical products imported into the US in return for the NHS raising spending on medicines.
As part of the deal, it was also agreed that repayment rates on NHS drug prices would be capped at 15% for the first three years.
This is the amount that drugs firms pay back to the NHS to ensure it does not overspend its allocated budget for branded medicines.
The Government said it is able to offset the lower rebate thanks to falling costs for medicines, in part driven by drugs coming off patent.
But Downing Street admitted soon after the trade deal that the agreement to increase the threshold for what the NHS can pay for new medicines by 25% will cost it around £1 billion extra a year by 2029.
The Association of the British Pharmaceutical Industry (ABPI) said the “high and unpredictable” rebate costs had been a “significant drag on UK life science competitiveness in recent years”.
Richard Torbett, chief executive of the ABPI, said: “It’s good that the amount of revenue companies will need to pay to the UK government has come down in 2026.”
He added: “However, this is only the first step in returning the UK to a more competitive position.
“Payment rates remain much higher than in similar countries, and there is work to do to accelerate the NHS’s adoption and use of cost-effective medicines to improve patient care.”
The Department for Health said the lower rebate costs should also make the UK an attractive place for investment by pharma firms, clinical trials and the early launch of new medicines.
Health innovation minister Dr Zubir Ahmed said that together with the tariff deal, “this will help secure and drive investment in the sector, ensuring Britain remains a powerhouse for life sciences for the benefit of our patients, our NHS and our economy”.
Science minister Lord Vallance added: “We need our brilliant life sciences companies to discover and get important new medicines to patients right across the NHS and to create jobs in the UK.
“This new rate helps achieve that.”
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