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Rishi Sunak 1 : Could cut VAT on energy bills to ease brutal cost of living crisis as Labour bids to force binding vote, Wiki, Bio, Facebook, Twitter, Bing, News

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A YouGov poll of party members for Sky News reveals how enthusiasm for Boris Johnson in the first year of his tenure is fading, with members questioning whether Chancellor Rishi Sunak or Foreign Secretary Liz Truss may be a better perspective on number 10.

The prime minister previously rejected the idea, saying that cutting the tax was a “blunt instrument” but may be forced to act in the face of mounting political pressure.

Labor is willing to put additional pressure on the government over the rising cost of living by challenging MPs to back past promises to cut.

In an opposition day debate in the House of Commons on Tuesday, the party will table a motion that, if passed, would force MPs to vote on the proposals. It could draw support from unhappy Tories over the increase burden.

In a meeting between the prime minister and the chancellor, a VAT cut and reductions in green levies designed to help boost green power generation were also mentioned, The Sun reported.

Meanwhile, the oil and gas industry responded to Labor demands for a one-time tax on profits as prices soar. In November, BP boss Bernard Looney said the company was “an ATM at these kinds of prices.”

But today, Oil and Gas UK said that the Treasury was already receiving increased tax revenue from rising prices.

Jenny Stanning, OGUK’s director of foreign affairs, said: ‘Our industry pays up to 40 per cent corporate tax on its profits, roughly double that of any other sector. That means the UK Treasury is already benefiting significantly from these price increases.

It is forecast to get an additional £ 3bn in corporate tax in the two years since last April, for a total of around £ 5bn according to Treasury figures..

Labour has proposed slashing VAT on energy bills for a year, alongside a windfall tax on the North Sea oil and gas industry, to help support those struggling as energy price rise.

But the Government has so far resisted making moves on VAT, and Education Secretary Nadhim Zahawi said oil and gas companies were ‘already struggling’.

However Labour says the industry was expected to report a near-record income in 2021-22.

They pointed to previous pledges made by members of the Government on VAT on energy bills, including Prime Minister Boris Johnson and Levelling Up Secretary Michael Gove.

Writing in The Sun in 2016 they said that leaving the EU would allow the UK to scrap VAT on energy bills, calling it ‘unfair’.

If backed, Labour’s binding motion would guarantee time in the Common for a Bill on cutting VAT.

The party said this could come into effect alongside expanding the Warm Homes Discount to 9.3 million people.

It comes after fuel poverty charity National Energy Action warned heating costs for the average home could double since last winter.

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