Miliband Weighs VAT Cut as Bills Rise | JQJO

Energy Secretary Ed Miliband said the government is examining a cut to the 5% VAT on household energy bills, while refusing to pre-empt November’s Budget. Citing a cost-of-living crisis, he argued lower bills depend on shifting to home-grown clean power. The Treasury declined to comment. Scrapping VAT would save an average £86 a year and cost £2.5bn, according to Nesta. Bills rose 2% this month under Ofgem’s cap to £1,755. Chancellor Rachel Reeves is planning targeted relief that could reduce regulatory levies, amid political debate over green costs and rival plans from Conservatives and the Greens.