Shropshire MP hits out at Labour's VAT pledge on bills

Stuart Anderson MP has criticised Prime Minister Andy Burnham's unfunded removal of VAT from electricity bills <i>(Image: Stuart Anderson MP)</i>
Stuart Anderson MP has criticised Prime Minister Andy Burnham's unfunded removal of VAT from electricity bills (Image: Stuart Anderson MP)
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An MP has criticised the new Government’s first move on energy bills as not going far enough.

Stuart Anderson, Conservative MP for South Shropshire, hit out after Prime Minister Andy Burnham pledged to scrap VAT on electricity bills.

The MP warned the policy would not offset expected price increases and said it excludes off-grid households.

Mr Anderson said: "People in South Shropshire are under real pressure from rising energy and fuel costs. Almost nine in ten people who responded to my Energy Costs Survey said they are highly concerned about rising costs.

"For those who drive for work, that concern is even greater. Labour pledged to cut energy bills by £300, but they have risen by nearly £294."

The Prime Minister announced that removing VAT from electricity would save households £45.

But Mr Anderson said bills are still forecast to rise by £44 in October. He also said more detail is needed on how the VAT cut will be funded.

The Office for Budget Responsibility has stated that the savings to fund the VAT cut do not exist in current budgets, meaning either taxes or borrowing will have to increase. He also raised concerns that the measure does not help off-grid homes.

Mr Anderson said: "The government must not forget those left exposed to heating oil price spikes."

In South Shropshire, 53 per cent of properties – around 24,117 households – are not connected to the mains gas supply. Many of these homes rely on heating oil or other fuels and are not covered by the Energy Price Cap.

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