BORIS Johnson is “likely” to slash VAT on energy bills – saving everyone hundreds of pounds as bills soar.
Though no final decisions have been made on how to help millions of people facing huge hikes in their energy costs, the PM is said to be warming to the idea of a cut to VAT.
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The PM and Chancellor are due to meet to discuss the issue and finalise their long list down to a shortlist of options.
Any announcement is set to come after Ofgem confirm the price cap will go up at the start of February – but but bill rises won’t come in until April.
Insiders stressed that a cut was always on the table, but is being looked at more favourably.
The PM previously talked down the idea when grilled by The Sun, insisting that it would be better to target those least well-off instead.
But back in 2016 Boris Johnson and Michael Gove looked the British people in the eye and — writing in The Sun — solemnly pledged leaving the European Union would mean, “fuel bills will be lower for everyone.”
After mulling it over, insiders think it’s likely that a VAT cut would come with another measure targeted at poorer households too.
A source close to the PM said: “There are a lot of options on the table, including the cut to VAT … There is a school of thought that you might do something
for everyone, such as a cut to VAT, and something more targeted for the least well off but it’s still to be decided.”
Meanwhile, scores of Tory MPs are demanding a rethink on National Insurance tax hikes – which will also come in at the start of April.
Last night Government sources stressed it will go ahead as planned – despite a string of top Tories calling for it to be delayed for a year.
Former Housing Secretary Robert Jenrick and former Brexit boss David Davis were among those calling for the £12billion tax grab to be halted.
It will hit pay packets in the new tax year.
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A Government source said last night: “The NHS and social care levy is crucial to ensure the NHS gets the funding it needs to clear the backlogs caused by the pandemic.
“This Government is determined to achieve social care reform, something that has been dodged for too long. NICs is a progressive way to raise the money, with every individual contributing according to their means and the lowest paid protected.”
Brits struggling to pay energy bills to get ‘more help’ minister says as Gov mulls £500 payouts to millions of families
This post first appeared on thesun.co.uk
