“Government must cut energy bill VAT to prevent perfect storm of crippling household bills in Bristol South” – Karin Smyth MP

Karin Smyth, MP for Bristol South has today (Wednesday January 5th) called on the Government to cut VAT on domestic energy bills to avoid a “perfect storm of crippling household bills.”

Her proposal, pushed in the House of Commons today by the Labour Party,  would make people’s energy bills cheaper and provide immediate relief to the budgets of 28m UK households as the cost of living crisis hits working people in Bristol. The call comes as inflation rises and energy bills leave many feeling the pinch.

The Labour Party’s VAT cut on domestic energy bills – which would change the charge from 5% to zero – could see people through the winter months, and would be automatically deducted from bills. The VAT cut would be paid for using the extra money coming from a higher than expected surplus of VAT receipts accrued since the start of the financial year.

Labour have also announced plans to ramp up the ambition on retrofitting homes for sustainable, long-term reduction in energy bills to further tackle rising energy costs and the climate emergency.


Karin Smyth, MP for Bristol South, said:

“Families in Bristol South are being hit by a cost-of-living crisis which has seen energy bills soar, food costs increase and the weekly budget stretched. As winter looms, they are facing a perfect storm of crippling household bills.

“Instead of doing something to help family budgets, the Tory Government have instead cut Universal Credit and hiked national insurance.  This is why Labour is calling on the Government to immediately remove VAT on domestic energy bills for six months, to provide immediate financial support to struggling families.

“The Government has the opportunity to do the right thing and give working people in Bristol South a helping hand by providing an immediate cut to their energy bills so they can stay warm this winter.”