Rishi Sunak is on the verge of losing his job, as British Gas calls for a tax cut to reduce energy bills.
Rishi Sunak is under increasing pressure to cut his energy bills, with even industry leaders urging him to do so.
As a result of rising inflation, energy costs, and new taxes, the Chancellor is being pressured to intervene.
In addition, according to new research published exclusively in today’s Daily Express, households over 65 pay twice as much on average for energy for heating and other domestic needs as those under 30.
Conservative and Labour frontbenchers have been urging the government to eliminate VAT on energy bills in order to relieve household stress.
British Gas has now joined the campaign, urging Mr. Sunak to reduce VAT and environmental taxes.
It is estimated that implementing such a change would save Britons £270 per year.
Such action, according to Chris O’Shea, CEO of Centrica, which owns British Gas, would be “fairer” and help to “protect families from the full force” of energy price increases.
The price of wholesale energy has risen, raising fears that the cap on how much energy can be sold to Britons could rise by £700 in April, crippling households.
Mr O’Shea wrote in The Sun, “Suspending VAT on energy bills could shave £100 off the typical bill,” urging the government to help families who will be hit the hardest by the hike.
“A more targeted option would be to help those who are most in need by contributing to their energy bill through a scheme run by the Department of Work and Pensions.”
“An alternative would be to remove environmental and social levies from energy bills and fund ‘green’ programs instead through general taxation.”
“Overnight, this would save £170 on annual bills.”
“It would also be more equitable.”
“Funding environmental costs through the bill means that no matter how rich or poor a customer is, they all pay the same amount.”
Backbenchers have also urged Boris Johnson to intervene, after the Prime Minister stated during the EU referendum that if the UK leaves the EU, the levy would be abolished.
“In 1993, VAT on household energy bills was imposed,” he wrote with Michael Gove in a joint article in May 2016.
“Gas and electricity will be much more expensive as a result of this.”
“Due to EU regulations, we are unable to deduct VAT from those bills.”
“Brinkwire News Summary.”