Rishi Sunak 'could slash VAT on household energy bills in Budget'

Asia's Tech News Daily

© Provided by Daily Mail MailOnline logo

Rishi Sunak could slash VAT on household energy bills in the Budget to ease the cost of living crisis, it was claimed today.

The Chancellor is believed to be considering reducing the 5 per cent rate even though he has very little room for manoeuvre in the financial package on October 27.

As well as relieving some pressure on struggling families, the move could allow Boris Johnson to hail a Brexit benefit, as VAT rates are set centrally within the EU.

With speculation starting to mount in the run-up to the Budget, Mr Sunak is also said to be keen to push ahead with an online sales tax after shelving plans for an overhaul of business rates.

Energy bills have been soaring after wholesale prices for natural gas spiked, forcing a slew of smaller suppliers to collapse.

The government’s cap on prices for households has already increased and is set for another eye-watering rise in April.

© Provided by Daily Mail (
© Provided by Daily Mail (

Tory MPs have been urging Mr Sunak to act on the burden, which comes alongside a range of other inflationary stresses, with warnings many people will face choices between ‘eating and heating’ this winter.

During the Brexit referendum campaign in 2016 Vote Leave pledged that ‘fuel bills will be lower for everyone’, pointing out that EU rules meant VAT on domestic energy had to be at least 5 per cent.

Government officials briefed on the Budget preparations told the Financial Times that reducing the level was on the table but no final decisions had been taken. 

‘It would tick two boxes — it reminds people of the benefits of Brexit and shows you’re listening to people,’ one Treasury official said.

However, Mr Sunak has been adamant that the government must rein in spending and the move would cost the Exchequer around £1.5billion a year.

It would also be politically difficult ahead of the COP26 summit, where Mr Johnson is begging world leaders to up the pace towards Net Zero.  

Paul Johnson, director of the respected Institute for Fiscal Studies think-tank, said reducing VAT would ‘increase the effective subsidy we provide for burning gas’. 

‘It would also cost over £1.5bn a year, with most of the benefit accruing to higher-income households,’ he added.

Meanwhile, the Telegraph said Treasury officials have intensified work on a new online sales tax designed to help level the playing field between firms like Amazon and high street retailers.

Mr Sunak is not expected to go ahead with a long-awaited overhaul of business rates in the Budget, dashing the hopes of many retailers who have been hammered by the pandemic. 

© Provided by Daily Mail (

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


Neighbours star Madeleine West, 40, flaunts her trim pins in a pair of Daisy Dukes as the mother-of-six heads to the shops in Byron Bay with her kids

Neighbours star Madeleine West has made no secret of her trim pins over the years.  And the 40-year-old proved she’s still in fantastic shape when she slipped into a pair of ... Read more »

Video: What ARE the new Covid rules? Government says travellers can take PCR test on or BEFORE day two meaning they can take one at airport soon as they land in UK - as mask and self-isolation rules also start tomorrow

Read more »

Nasa promises nuclear power plant on MOON by 2030 – with a bizarre catch

NASA has plans to put a nuclear power plant on the Moon within this decade but it's publicly asking for help to make it happen. The space agency and the ... Read more »

Anne Robinson breaks silence on Countdown ‘feud' with Rachel Riley – admitting ‘I'm hard to please'

ANNE Robinson has broken her silence on her Countdown 'feud' with Rachel Riley – admitting 'I'm hard to please'. The Sun revealed how the pair have clashed over dressing rooms, ... Read more »

Mum stunned after realising the reason why her breastmilk totally changes colour… going from yellow to brilliant white

A MUM has revealed how her breast milk drastically changes in colour depending on how her baby is feeling. Jessica Gancedo shared a video on TikTok where she showcased the ... Read more »

I'm A Celebrity 2021 – Richard Madeley says Naughty Boy ‘looks pathetic' constantly complaining & viewers won't like him

I’M A Celebrity is facing further chaos as the damage caused by Storm Arwen has forced producers to CANCEL Monday night's episode. ITV was forced to cancel last weekend’s episodes of the ... Read more »

Mum shares the easy way she shops for shoes WITHOUT having to take the squirming kids along

AS any parents will know, taking kids shoe shopping can be a very trying experience. But one clever mum has come up with a way to take the stress out ... Read more »

Why you should never put a padlock on your suitcase

EVEN if you want to make your suitcase more secure, you should avoid putting a padlock on it when going on holiday. A baggage handler has explained how locks don't ... Read more »

Miss Kentucky Elle Smith crowned Miss USA

Miss Kentucky Elle Smith was crowned 2021 Miss USA at Monday night’s pageant. Smith won the competition at the River Spirit Casino Resort in Tulsa, Oklahoma. The University of Kentucky ... Read more »

Kuwait's exiled opposition returns home after royal pardon

1 / 2KuwaitIn this frame grab from video, pardoned Islamist lawmaker Faisal al-Muslim waves to supporters at a celebration marking his return to Kuwait, in Kuwait City, Kuwait, Tuesday, Nov. ... Read more »

Strictly Come Dancing turns queer energy up to 11 with fierce, fiery tango: ‘Goosebumps galore!'

Strictly Come Dancing may have aired its queerest episode yet, with a fiery tango from Johannes Radebe and John Whaite, and an incredible performance from Years and Years. Radebe and ... Read more »

Ava White: Teenage boy charged with murdering girl, 12, in Liverpool is remanded

A 14-year-old boy has been remanded in secure accommodation after appearing at Liverpool Magistrates’ Court charged with the murder of Ava White, 12, who was stabbed in the city centre ... Read more »

Masks compulsory in shops from today as Iceland boss says he won't ask staff to enforce new rules

People queue outside an Iceland supermarket in London back in March 2020 – Shutterstock Face masks have once again become mandatory in shops in England from this morning, but one ... Read more »

France to put forward proposals for tackling the Channel migrant crisis

France is to put forward proposals for tackling the Channel migrant crisis as the interior minister suggested talks with the UK could resume. Gerald Darmanin has said prime minister Jean ... Read more »

Voices: We must address the root causes of knife crime to prevent tragedies like Ava White's death

12-year-old Ava White died after she was stabbed following an argument in Liverpool city centre (PA) Knife crime is yet again in the headlines, as the 14-year-old boy remanded in ... Read more »

Sexual harassment rife inside Australian parliament, report finds

© Getty Images Australian Parliament House More than half of employees in Australia’s federal parliament have experienced bullying, sexual harassment or sexual assault, a landmark review has found. The report ... Read more »

Dow futures drop 470 points after Moderna CEO predicts vaccines will be less effective against Omicron

© AP Photo/Richard Drew Analysts said stocks are set for volatility over the coming weeks. AP Photo/Richard Drew Dow futures fell by more than 470 points Tuesday after Moderna’s CEO ... Read more »

COVID: German Constitutional Court rules 'emergency brake' measures were legal

© Provided by dw.com The ’emergency brake’ required regions to put curfews in place above a certain infection rate Restrictions imposed by the German government on the populations of individual ... Read more »

House of Gucci: Jared Leto's ‘crazed' performance criticised by Tom Ford

© Getty/Universal pjimage (24).jpg Tom Ford has criticised Jared Leto’s performance in House of Gucci. In the film, which was released last week to mixed reviews, Leto plays Paolo Gucci, ... Read more »

Jussie Smollett juror dismissed after expressing wish to protect gay daughter

© Bang Showbiz Jussie Smollett hate crime juror dismissed to protect daughter A woman selected to be a juror in Jussie Smollett’s hate crime trial was dismissed after she admitted ... Read more »

Oppo Enco Free 2, Enco Air Lite TWS earbuds may launch in India soon

Oppo is seemingly planning to bring a slew of new products to India next year. Apart from the Reno 7 series phones that are reportedly coming to the Indian market ... Read more »

‘Kalau benar atlet Israel jejak kaki di sini, saya pertama menentang', kata Peja

© Provided by Free Malaysia Today Menteri Belia dan Sukan, Ahmad Faizal Azumu (kanan) mencuba sukan tinju selepas merasmikan Kompleks Sukan MSN Nilai di Seremban hari ini. (Gambar Bernama) PETALING ... Read more »

Peralihan ke fasa endemik ditangguh akibat varian Omicron

© Provided by Free Malaysia Today PETALING JAYA: Kerajaan menangguhkan rancangan peralihan ke fasa endemik akibat varian Omicron yang dikesan. “Buat masa ini, Mesyuarat Kuartet telah memutuskan untuk menangguhkan seketika ... Read more »

PRN Sarawak: Bersih persoal JPBS terlibat rangka SOP

© Provided by Free Malaysia Today Teo menegaskan ia penting bagi menegakkan integriti proses dan menjadikan pilihan raya inklusif supaya semua kategori pengundi boleh mengambil bahagian. PETALING JAYA: Bersih Sarawak ... Read more »

Sekolah bawa masuk ‘Ultraman'. Murid-murid teruja dan tak sabar nak tengok dekat-dekat!

Seramai 720 murid Kumpulan B Sekolah Kebangsaan (SK) Dato’ Wan Kemara, Changlun, Kedah teruja apabila disambut oleh adiwira Ultraman setibanya mereka ke sekolah awal pagi Ahad lalu. Lebih mengujakan apabila ... Read more »

DNA Explainer: What rulebook says regarding suspension of MPs, why were 12 Rajya Sabha MPs suspended

© Provided by DNA A dozen members of opposition parties in Rajya Sabha have been suspended from the winter session of the Parliament on the very first day following a ... Read more »

Cryptocurrency Bill: Govt to Bring a New Crypto Bill, Previous Bill Reworked, Says FM

© Provided by News18 Cryptocurrency Bill: Govt to Bring a New Crypto Bill, Previous Bill Reworked, Says FM Clearing all the doubts and panic among investors regarding the upcoming cryptocurrency ... Read more »

12-year-old Assam girl rescued after 9 years, was sold in Arunachal Pradesh for Rs 1 lakh

12-year-old Assam girl rescued after 9 years, was sold in Arunachal Pradesh for Rs 1 lakh A 12-year-old girl, who was trafficked and sold in Arunachal Pradesh for Rs 1 ... Read more »

Pakistan puts transit conditions on Indian aid to Afghanistan

Pakistan puts transit conditions on Indian aid to Afghanistan Pakistan has sent a list of conditions to India before allowing Indian aid to reach Afghanistan. The new terms come days ... Read more »

Mamata Banerjee to Call on Sharad Pawar During Mumbai Visit; No Meet With Uddhav Thackeray as CM in Hospital

© Provided by News18 Mamata Banerjee to Call on Sharad Pawar During Mumbai Visit; No Meet With Uddhav Thackeray as CM in Hospital West Bengal Chief Minister Mamata Banerjee will ... Read more »

Paytm brings its card-on-file tokenization to Myntra, Oyo, Domino's and others; enables secure online transactions

© Provided by CNBCTV18 Paytm, country’s digital ecosystem for consumers and merchants, on Tuesday announced that its wholly-owned subsidiary Paytm Payments Services Ltd (PPSL) has made strides with its card-on-file ... Read more »

Omicron scare: Is it a good time to add diagnostics stocks to your portfolio?

© Provided by CNBCTV18 Diagnostics stocks are in demand once again on Dalal Street, as benchmark indices attempt to recover from Friday’s sell-off following the news of the new COVID-19 ... Read more »

Procedure to suspend Param Bir Singh has begun: Dilip Walse-Patil

Former Mumbai Police Commissioner Param Bir Singh will be suspended soon for his “indiscipline and other irregularities”, said Maharashtra Home Minister Dilip Walse-Patil. “We’re in the process of taking legal ... Read more »

150 Ancestral Properties of Hindus Restored in J&K, Centre Tells Parliament

© Provided by News18 150 Ancestral Properties of Hindus Restored in J&K, Centre Tells Parliament As many as 150 ancestral properties of Hindus in Jammu and Kashmir have been restored, ... Read more »

13 Arrested in Assam After AASU Leader Animesh Bhuyan Died in Mob Lynching

© Provided by News18 13 Arrested in Assam After AASU Leader Animesh Bhuyan Died in Mob Lynching Another shocking mob lynching case has taken place in Assam where a 23-year-old ... Read more »

Omicron Covid variant: Delhi airport makes arrangements to test all passengers from at-risk nations

Delhi airport has made necessary arrangements to implement the Centre’s new travel guidelines issued in light of the Omicron variant. In light of the new coronavirus variant Omicron, the central ... Read more »

New Covid-19 variant : Kejriwal urges PM again to stop foreign flights

© Provided by The Statesman New Covid-19 variant : Kejriwal urges PM again to stop foreign flights Delhi Chief Minister Arvind Kejriwal on Tuesday urged Prime Minister Narendra Modi for ... Read more »

Health Minister Gillian Keegan defends UK response to Omicron variant

© Provided by Daily Mail MailOnline logo Health Minister Gillian Keegan today insisted it is better for the UK to ‘overreact than underreact’ to the new Omicron coronavirus variant after ... Read more »

Odisha logs 228 new COVID-19 cases, two fatalities

© Provided by The Statesman Odisha logs 228 new COVID-19 cases, two fatalities The COVID-19 cases in the coastal State increased by around 16% in the last 24 hours as ... Read more »

Could trying to stay AWAKE be the secret to curing insomnia?

© Provided by Daily Mail MailOnline logo Anyone who struggles with insomnia knows the hugely detrimental affect it can have on daily life.  Causes can include physical conditions like long-term ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic