Labour is proposing removing VAT on bills for a year and a windfall tax on North Sea oil and gas producers as part of a package designed to save households hundreds of pounds on their energy costs.
In addition, the £6.6bn plan would see the party expand and increase the warm homes discount for those most at risk.
Labour says the package of support would save most households around £200, while targeted support to those on lower incomes, pensioners and the squeezed middle would mean they save as much as £600.
‘Bills can’t be paid on broken promises’
Boris Johnson’s government has come under concerted pressure to act in recent weeks, amid worries over the rising cost of living.
Experts have predicted that rising wholesale costs will result in a 50% rise in bills from April, when the latest change to the energy price cap takes effect.
If this comes to pass, an average household on a supplier’s default tariff would face paying nearly £2,000 a year for the gas and electricity, compared to under £1,300 at the moment.
Speaking to Sky News, the party’s shadow chancellor Rachel Reeves said that if now is not the time to cut VAT on energy bills then “frankly I don’t know when is”.
“The prime minister was the biggest advocate for cutting VAT on gas and electricity bills during the European referendum [in 2016],” she told Trevor Phillips on Sunday.
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‘Profits before people’
“But now when cutting those bills would make more difference than ever, the prime minister says no.
“Well, I say that bills can’t be paid on broken promises. The government should…
Source : skynews
