Labor challenge Tories to remove VAT on energy bills for a year

Labor is expected to put further pressure on the government in the face of rising costs of living by challenging MPs to back past pledges to cut VAT.

In an opposition Commons debate on Tuesday, the party will bring forward a motion that, if passed, would force MPs to vote on the proposals.

And Labor Party Secretary for Climate Change and Net Zero Ed Miliband said it was time to support families during the “growing cost of living crisis.”

Labor has offered to cut VAT on energy bills for a year, as well as a one-off tax on the North Sea oil and gas industry, to help support those fighting against rising prices from energy.

But the government has so far resisted any VAT move, and Education Secretary Nadhim Zahawi said oil and gas companies were “already in trouble”.

However, Labor has said the industry is expected to report near-record revenue in 2021/22.

They highlighted previous commitments made by members of the government on VAT on energy bills, including Prime Minister Boris Johnson and Leveling Up Secretary Michael Gove.

Writing in The Sun in 2016, they said leaving the EU would allow the UK to remove VAT from energy bills, calling it “unfair”.

If supported, Labor’s binding motion would guarantee time in the Commons for a draft VAT reduction bill.

The party said that could come into effect alongside the extension of the hot house rebate to 9.3 million people.

It comes after the National Energy Action charity warned that heating costs for an average home could double since last winter.

Mr Miliband said: “The government and all Tory MPs who have already backed a VAT cut on home energy bills should keep their promises and vote today with Labor to remove the tax for a year , because workers are facing a growing cost of living crisis.

“The Conservatives’ clear opposition to the windfall tax tells you exactly which side they are on – and it is not the British who are struggling with their energy bills.

“This tells you everything you need to know about this government who thinks we should prioritize the oil and gas companies making huge windfall profits which they say are ‘struggling’, rather than the British people who are facing to the real struggle to pay its energy bills.

“The work will stand up for millions of families across the country, with a package that will not only help the average household with around £ 200 off bills, but also targeted and targeted support for those who need it most – y including the low income, the retired and the tight middle – with up to £ 600 in total on their bills. “

Number 10 said on Monday that ministers acknowledged there was “rising costs for things like food and fuel” around the world.

But Labor dismissed the fact that the problems were caused solely by global factors, highlighting instead what they called a decade of energy failure on the part of the Tories.

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