Green levies could be slashed by Rachel Reeves to pay for a reduction in energy bills, according to Treasury sources.
A new energy support package is being finalised which is likely to cut taxes and green levies from people’s bills as the Chancellor looks to save as much as £170 from the average bill.
Labour is looking to take the fight to Reform, which previously pledged to scrap net zero and “wage war” on renewables developers if it wins power.
Senior Cabinet members, including Sir Keir Starmer, have identified high energy bills as being a major source of financial pressure for voters and are planning a relief package likely to cost about £3billion a year.
The Prime Minister is understood to be concerned about the impact of an expected £100 rise in energy bills next spring.
A major part of the plan, insiders told The Guardian, will be eliminating the five per cent VAT rate on part or all of domestic energy bills, in a move that experts say would cost £2.5billion a year and bring down bills by an average of £86.
Reeves is reportedly planning to reduce or eliminate some of the green levies on bills, which could reduce costs for householders and undercut Nigel Farage’s pledge to do the same.
However, energy bosses voiced concerns about the plans, saying the move would be “disastrous.”
Chief executive of Energy UK Dhara Vyas told The Guardian: “Billions of pounds of investment have been on hold while we await the warm homes plan, all of which could be jeopardised by any sudden change of direction.
“So hijacking the plan’s budget and effectively abandoning its original purpose would be a shortsighted and disastrous move.”
Speaking yesterday, Ms Reeves hinted at tax rises in the upcoming budget, saying: “If we have to build the future of Britain together, we will all have to contribute to that effort.
“I have to face the world as it is, not the world that I want it to be. And when challenges come our way, the only question is how to respond to them, not whether to respond or not.”
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Sadiq Khan heaps praise on Zohran Mamdani as he claims ‘hope won – just like in London’
Sir Sadiq Khan has lavished Zohran Mamdani with praise after his “historic” victory in the New York City mayoral election.
After Mr Mamdani surged to victory on Tuesday night, the Mayor of London likened the result to his own triumph in Britain’s capital.
Sir Sadiq said: “New Yorkers faced a clear choice, between hope and fear, and just like we’ve seen in London – hope won. Huge congratulations to Zohran Mamdani on his historic campaign.”
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Andrew Griffith hits back at Rachel Reeves – ‘She’s trying to blame everybody on the planet but herself’
Andrew Griffith hit back at Rachel Reeves
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GB NEWS
Andrew Griffith hit back at Rachel Reeves after she accused the Tories of “economic mismanagement”.
The Shadow Secretary of State for Business and Trade told GB News: “Of course she’s trying to blame everybody on the planet but herself.”
“To be quite honest it’s one lie after another…There’s no economy on the planet that has taxed itself to success. What you need is the Government off people’s backs.”