Energy Secretary Ed Miliband has suggested the government is considering cutting the 5% rate of VAT on household energy bills, as ministers prepare measures to tackle the deepening cost-of-living crisis ahead of next month’s Budget.
Speaking on the BBC’s Sunday with Laura Kuenssberg, Mr Miliband refused to confirm whether a VAT cut was being actively pursued but acknowledged that households were struggling under high energy costs and that “all of these issues” were under review.
“We face a longstanding cost-of-living crisis that we need to address as a government,” he said. “We also face difficult fiscal circumstances… so obviously we’re looking at all of these issues.”
Labour pledged ahead of the last general election to cut average energy bills by £300 a year by 2030, a commitment Mr Miliband insisted still stands. However, he argued that long-term price stability depends on accelerating the shift away from fossil fuels towards clean, domestically generated energy.
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