Luke Pollard calls for immediate VAT cut on energy bills in Plymouth

Plymouth MP Luke Pollard has today called on the government to immediately remove VAT from domestic energy bills, as the cost of living crisis hits working people across the country.

The call comes ahead of Chancellor Rishi Sunak’s Budget on Wednesday, and as rising inflation and energy bills leave many feeling the pinch. Rising gas and energy bills means families across Plymouth are feeling the pinch. A third of Plymouth’s children are already living in poverty and rising energy prices and a cut in Universal Credit

Labour say a VAT cut on domestic energy bills – which would change the charge from 5% to zero – could come into place from 1st November. It should last for six months, seeing people through the winter months and would be automatically deducted from their bills.

This tax cut would be funded for by the higher-than-expected VAT receipts accrued since the start of the financial year.

To further tackle higher energy bills and the climate emergency, Labour recently announced how they would ramp up the ambition on retrofitting homes for sustainable, long-term reductions in energy bills – a major policy announced in Labour Leader Keir Starmer’s party conference speech – as well as building a more secure energy supply chain including new nuclear and improved gas storage, all pointed towards achieving Net Zero.

The Labour party have said the VAT cut would offer a helping hand when people need it most, and alongside not cancelling the Universal Credit uplift, and not hitting working people and businesses with a new jobs tax, this VAT reduction is part of Labour’s plan to tackle the cost-of-living crisis.

Luke Pollard MP said:

“Right now in Plymouth, people are being hit by a cost-of-living crisis which has seen energy bills soar, food costs rise and the weekly budget stretched.

“That’s why I’m calling on government to immediately remove VAT on domestic energy bills for six months.

“With the Budget approaching, the Chancellor has choices to make. He can choose to let online giants dodge tax, and ignore the cost of living crisis – or he can give working people in the South West a helping hand by providing an immediate cut to their surging energy bills.”