Former UK finance minister Rishi Sunakwho is vying to become the country’s next prime minister, on Thursday laid out a plan, including cutting energy billto address rising costs for households.
Writing in The Times, he said each household would save around £200 ($244) on energy bills with the reduction in value-added tax (VAT).
The UK is bracing for already more than tripled energy bills this year, with charities warning that millions could be pushed into poverty if the government doesn’t roll out a multi-billion pound support package to ease the blow.
Sunak, the underdog in the race leads after runner-up Liz Shoes, said his plan would include “support for the most vulnerable, support for retirees and some support for everyone.” (https://bit.ly/3K3rIYx)
The former finance minister said the most vulnerable group of people and pensioners would receive money to meet their energy costs through the welfare system.
Sunak also said that he would pay for the plan by promoting a program that determines savings across the government. “That could mean we have to stop or pause some work in government.”
He added that he was prepared for “some limited and temporary, one-time loans as a last resort to get us through this winter.”
“With energy prices continuing to rise, it is more likely that the government will generate more revenue from the Energy Profit Tax I introduced,” he added, referring to the imposition of a 25% tax on with the profits of oil and gas producers that he had previously introduced as finance minister. .
Sunak’s opponent, Secretary of State Truss, has said she favors tax cuts for households, rather than getting refunds through energy assistance.
Truss also said on Wednesday that she would work with energy companies to lower prices if she becomes Prime Minister. Critics say the tax cuts will benefit the richest over the poorest.