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Chancellor of the Exchequer, Rishi Sunak will try to leverage on post-Brexit rules to help slash energy bills this winter.
As the economy continues to exacerbate cost of living, Treasury is considering possible options to help families cope with the economic crunch of post-Brexit Britain.
In recent weeks the cost of wholesale gas has increased, almost in exponential proportions, making it difficult for millions across the country to keep up with energy bills.
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Many suppliers have reportedly ceased operations due to the energy hike, forcing households to pay higher tariffs to the few providers who are still in business.
It is understood that Rishi Sunak is now considering a cut to the five percent rate of VAT on energy to help cushion the effect of the energy hike.
Brexit campaigners, including Prime Minister Boris Johnson, while prodding the people to vote against the EU in the 2016 Brexit referendum had promised that “fuel bills will be lower for everyone” during the post-Brexit era.
EU stipulations directs member states not to cut VAT on domestic energy and gas below five percent.
According to a statement by the Vote Leave campaign: “When we Vote Leave, we will be able to scrap this unfair and damaging tax.
“It isn’t right that unelected bureaucrats in Brussels impose taxes on the poorest and elected British politicians can do nothing.”
Financial Times believe Mr Sunak is considering a VAT reduction as part of his Budget due to take place later this month.
“It would tick two boxes — it reminds people of the benefits of Brexit and shows you’re listening to people,” one Treasury official told the publication.
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The Chancellor is expected to announce his tax and spending plans to the House of Commons on October 27.
With the UK’s debt profile hitting a record high during the pandemic, Sunak is facing monumental challenges on how to help families through what is expected to be a tough winter without further worsening the nation’s debt profile.
The post Brexit: Rishi Sunak To Slash Energy Bills Amid Price Hike appeared first on SurgeZirc UK.
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