As energy bills across UK surge due to the rapid rise in global wholesale prices, around twenty politicians from the Conservative party, also known as the Tory party, have reportedly urged the Prime Minister Boris Johnson and Chancellor Rishi Sunak to cut energy taxes.
Apparently, the MPs along with their peers wrote a letter, asking the Chancellor and PM to help address ‘fuel poverty’ faced by the country’s citizens. The letter states that UK’s energy prices are comparatively surging faster than any other nation in the world, owing to environmental and taxation levies.
Politicians have urged PM Johnson to eliminate the 5% VAT on energy bills as well as environmental taxes that finance renewable energy initiatives, which currently stands at 23% for electricity.
According to the ministers, doing so can save the normal household £200 on their energy bill.
Craig Mackinlay, head of Tory MPs Net Zero Scrutiny Group, Esther McVey former work and pensions minister, as well as MPs Steve Baker and Robert Halfon, are the ones who have signed the letter.
The MPs further stated that the Climate Change Levy on commercial energy consumption makes UK’s energy-intensive industries uncompetitive and raises costs for consumers on nearly all things.
After gas costs in wholesale markets surged over 500% in less than 12 months, energy suppliers such as Good Energy, EDF, as well as trade body Energy UK have asked the authorities to intervene.
Just after Christmas, Business Secretary Kwasi Kwarteng called an emergency meeting with the heads of major energy companies, who are known to also have requested tax deductions along with the relaxation of green charges.
With UK's energy price cap set to be reviewed in April, homeowners are slated to see a significant hike in energy bills, with suppliers expected to raise rates in line with expenses.
Since the starting of September, over two dozen energy firms have fallen short, leaving millions of homes without power while they await a new energy provider and leaving thousands of employees out of jobs.