Overcharged and overtaxed. UK energy customers are getting clobbered from all directions: the markets, the so-called climate levies, and taxes. The government is in disarray as its renewables-based policies force the pace of cost increases.
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Energy bills have soared as global wholesale prices have risen rapidly – but some Tory MPs and peers say they have increased more in the UK because of taxes the government has the power to remove.
Twenty Conservative politicians have urged Boris Johnson to scrap energy taxes as bills continue to rocket, reports Sky News.
The MPs and peers have written a letter in the Sunday Telegraph to ask the prime minister and Chancellor Rishi Sunak to help consumers facing “fuel poverty”.
Energy prices in the UK are being forced up faster than any other comparable country due to “taxation and environmental levies”, they wrote.
“It would be easy to dismiss these as due entirely to international cost pressures that all economies are facing,” the letter said.
“However, we have almost uniquely caused our energy prices, through taxation and environmental levies, to increase faster than those of any other competitive country.
“High energy prices, whether for domestic heating or for domestic transport, are felt most painfully by the lowest paid.”
The politicians have asked the prime minister to remove the 5% VAT on energy bills and environmental levies that fund renewable energy schemes, which is 23% for electricity.
Doing so could save the average household £200 on their energy bill, they said.
Politicians who have signed the letter include Craig Mackinlay, chairman of the Net Zero Scrutiny Group of Tory MPs, former work and pensions secretary Esther McVey, and MPs Steve Baker and Robert Halfon.
They added that the Climate Change Levy on business energy use is “making UK energy-intensive businesses uncompetitive and again increases the costs to consumers on virtually everything”.
Full report here.
via Tallbloke’s Talkshop
January 2, 2022 at 08:57AM