The chancellor has resisted calls to increase benefit payments or give larger discounts off energy bills. He has signalled he will wait until the autumn Budget to offer tax cuts. But what are the options at his disposal?
VAT cut
The Liberal Democrats are backing a reduction in VAT on household energy bills from 5 per cent to zero. The move would cost around £2.5bn and save the average energy customer £90 a year. However, it would not be targeted at those most in need, with wealthier households also seeing a benefit.
Windfall tax
Labour is pushing the government to bring in a one-off tax on North Sea oil and gas producers, who are among those to have benefited from big increases in prices this year.
This story is from the May 21, 2022 edition of The Independent.
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This story is from the May 21, 2022 edition of The Independent.
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