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City MP votes for Labour package to tackle rising energy bills with windfall tax on oil and gas producers

By 1 February 2022February 15th, 2022No Comments

Stephen Morgan MP has voted for a fully-funded package to help families with rising bills in the House of Commons today, as the cost-of-living crisis continues to grip the country.

Energy bills are expected to significantly rise in April, on top of the planned £12bn tax hike for National Insurance payers.

Conservative MPs have already voted against Labour’s motion to cut VAT on fuel bills, despite promises made by many MPs- including the Prime Minister, during the Brexit campaign that they would support such a measure. 

This motion, put forward by Labour in its opposition day debate, gave Conservative MPs an opportunity to vote for a windfall tax to help fund a national package of support for households. 

Oil and gas producing producers are expected to report “near record” income in 2021/22.

Labour is proposing that a windfall tax on these producers could help fund relief measures for families.

Labour’s fully-costed package to keep energy bills low would be achieved through scrapping VAT off home energy bills for a whole year – alongside focused and targeted support through increasing and expanding the Warm Homes Discount to 9.3 million people. 

This would help the average household with around £200 off bills, whilst also delivering targeted and focused support for those who need it most – including low earners, pensioners and the squeezed middle – with up to £600 in total off their bills.

The Member of Parliament for Portsmouth South, Stephen Morgan, commented:

“Energy bills are expected to rise significantly in April, and whilst Labour has proposed a fully costed package to help Portsmouth families with rising bills, the Government has failed to deliver any practical steps to alleviate the crisis.

“That’s why we would give families security by taking fully funded measures to save most households around £200 or more.

“We’d also target extra support on top of that for the squeezed middle, pensioners and lowest earners – saving over 30,000 households in Portsmouth up to £600 off their bills in total.

“Portsmouth families deserve far better, not more dither and delay from this Tory government. Local Conservative MPs surely cannot justify voting against these proposals.”

The Portsmouth MP recently launched his campaign calling for VAT on energy bills to be scrapped. To sign up, visit: https://www.stephenmorgan.org.uk/sign-up-scrapping-vat-on-energy-bills/