Energy bills: Boris Johnson told to 'get rid of the levy!'
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The EU VAT is a five percent levy on energy bills imposed by the bloc back in 1993. Mr Johnson promised during the 2016 Brexit campaign that the UK could scrap this rule that sees higher charges on Britons’ bills. While bills are now soaring for millions of households amid an energy crisis, the Prime Minister poured cold water on calls from 20 Red Wall MPs who demanded to scrap it.
Mr Johnson called this measure a “blunt instrument”, much to the dismay of the MP’s who snatched key Labour stronghold seats in the Red Wall in the 2019 election.
Shadow Minister Digital, Science and Technology Chi Onwurah is furious that Mr Johnson did not stick to his Brexit pledge, even brandishing the opportunity as a “benefit of Brexit”.
She told Express.co.uk: “We (Labour) are very clear that Brexit has happened – we have left the EU, we have got to get on with it.
“He (Mr Johnson) is not building on what Brexit has delivered for us in any way, he is making the wrong choice.
“The ability to CUT VAT is a consequence of leaving the EU.”
Rewind to 2019 and it was Ms Onwurah’s party who was campaigning against Brexit, promising a fresh vote on the decision under former leader Jeremy Corbyn.
While it’s fair to say Labour was a Remain-leaning party, most of its MPs now say they accept Brexit and want to make the best of it.
But on Thursday, Chancellor Rishi Sunak ruled out the possibility of following through on the Tories promise to cut EU VAT.
Now, bills are expected to soar further.
Ofgem confirmed the energy price cap (the maximum tariff suppliers can charge) will rise to nearly £2,000 in April, a 50 percent rise from the current charge.
This comes as Mr Johnson’s leadership has come under the microscope over the “Partygate” scandal, which has seen his popularity plummet.
MPs from his own party are handing in votes of no confidence, with the 54 letter threshold edging closer every day.
At a time when the Prime Minister needs his MPs and the public on his side, he has refused to budge on the Brexit promise that many voters may feel betrayed by.
Mike Foster, head of Energy Utilities Alliance told Express.co.uk: “It is a clear betrayal of Brexit voters, who were promised that VAT on energy bills would be scrapped.
“If the Prime Minister doesn’t stay true to his word, they would be right to feel they have been lied to.
“Whether he should have made that promise or not, without understanding the implications is irrelevant, he made that promise and he needs to deliver on it.”
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Instead of scrapping the EU VAT, the Government has drafted up measures such as a £200 discount all households can get off their energy bills for October.
The discount has to be paid back by £40 a year over five years from 2023.
This was announced by Mr Sunak after energy regulator Ofgem revealed the price cap rise.
But the Shadow Science Minister was not the least impressed by this measure.
Ms Onwurah told Express.co.uk: “Instead of..cutting VAT which goes into just about everyone’s pocket, which is a really clear choice that he advocated himself, we have got this complicated buy now, pay later scheme when bills are liable to go up.
“I think it is totally the wrong choice. He is supporting big energy companies instead of working people.”
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