UK chancellor urged to remove ‘hidden taxes’ from energy bills
Businesses, charities and other groups sign letter calling for levies to be paid by the government More than 120 organisations including big businesses and charities have called for the removal of “hidden taxes” added to energy bills to help reduce costs for consumers and prevent businesses closing. In a letter to the chancellor the signatories – including Energy UK, business trade body the CBI,…
A coalition of more than 120 prominent organisations, including major businesses and charities, has urged the UK chancellor to abolish "hidden taxes" embedded in energy bills. The letter, addressed to Chancellor John Healey, calls for the government to fund these levies, which currently amount to 10% of energy bills, through taxation rather than energy consumers.
The signatories, such as Energy UK, the CBI, End Fuel Poverty, and Age UK, argue that removing these levies would reduce the average household bill by up to £250 annually, including a £150 saving from the proposed cuts to green energy schemes under former Chancellor Rachel Reeves. Furthermore, the removal of these taxes is expected to decrease electricity prices for businesses by 20%.
The letter contends that levies are hindering the UK's ability to lower energy costs and are actively counterproductive to the government's cost-of-living and reindustrialisation objectives. With the recent surge in energy prices, driven by geopolitical tensions and the Russia-Ukraine war, the UK faces the highest energy charges in three years.
The thinktank E3G, which co-authored the letter, emphasizes that removing these taxes is a necessary step in addressing the cost-of-living crisis and enabling economic growth.
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