Former Chancellor of the Exchequer Rishi Sunak, who is running for Prime Minister of Britain, presented yesterday, Thursday, a plan that includes a reduction in energy bills in order to deal with their increased costs for households.
In an article in “The Times” Sunak said that each household would see reductions of around £200 on their energy bills with a reduction in Value Added Tax (VAT).
The UK is already bracing for more than a tripling of energy bills this year, with charities warning that millions of people will be pushed into poverty if the government does not implement a multi-billion pound support program to reduce the impact.
Sunak, who is trailing Liz Truss in the polls for the premiership, said his plan would cover “support for the sickest, for pensioners, while some kind of support will be given to everyone”.
The former finance minister stressed that the weakest social groups and pensioners will receive money to cover energy costs through the social welfare system.
Sunak also explained that he would cover the financial cost of supporting households with energy through a government spending savings program. “This may mean that we have to stop or suspend some things in the government,” he said. He added that he was prepared “for limited and temporary borrowing as the last available means to get us through the winter.”
“Given that energy prices will continue to rise, it is also likely that the government will get more revenue from the (Energy Profits Levy) that I have introduced,” he added, referring to a 25% tax rate that has to be levied on the windfall profits of oil and gas companies This tax was activated when Sunak was finance minister.
Foreign Minister Tras, who is vying for the prime ministership, said that she is in favor of reducing taxation for households rather than providing financial liquidity to deal with the consequences of high energy prices.
Tras also said yesterday, Wednesday, that he will work with the energy companies to reduce prices, if he is chosen for the prime ministership. Its critics say the tax cuts will benefit the rich over the poor.
SOURCE: APE-ME
Source: Capital
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