Energy crisis: Conservative MPs urge Boris Johnson to scrap taxes as bills rocket

Posted: January 2, 2022 by oldbrew in Energy, fuel poverty, government, Politics, Subsidies
Tags: , ,


Overcharged and overtaxed. UK energy customers are getting clobbered from all directions: the markets, the so-called climate levies, and taxes. The government is in disarray as its renewables-based policies force the pace of cost increases.
– – –
Energy bills have soared as global wholesale prices have risen rapidly – but some Tory MPs and peers say they have increased more in the UK because of taxes the government has the power to remove.

Twenty Conservative politicians have urged Boris Johnson to scrap energy taxes as bills continue to rocket, reports Sky News.

The MPs and peers have written a letter in the Sunday Telegraph to ask the prime minister and Chancellor Rishi Sunak to help consumers facing “fuel poverty”.

Energy prices in the UK are being forced up faster than any other comparable country due to “taxation and environmental levies”, they wrote.

“It would be easy to dismiss these as due entirely to international cost pressures that all economies are facing,” the letter said.

“However, we have almost uniquely caused our energy prices, through taxation and environmental levies, to increase faster than those of any other competitive country.

“High energy prices, whether for domestic heating or for domestic transport, are felt most painfully by the lowest paid.”

The politicians have asked the prime minister to remove the 5% VAT on energy bills and environmental levies that fund renewable energy schemes, which is 23% for electricity.

Doing so could save the average household £200 on their energy bill, they said.

Politicians who have signed the letter include Craig Mackinlay, chairman of the Net Zero Scrutiny Group of Tory MPs, former work and pensions secretary Esther McVey, and MPs Steve Baker and Robert Halfon.

They added that the Climate Change Levy on business energy use is “making UK energy-intensive businesses uncompetitive and again increases the costs to consumers on virtually everything”.

Full report here.

Comments
  1. ilma630 says:

    It’s not the ‘taxes’ that are of themselves the problem, but the structure of the energy system, with govts attempting to pick winners and losing sight of reality in the process.

  2. […] Energy crisis: Conservative MPs urge Boris Johnson to scrap taxes as bills rocket […]

  3. Johna says:

    It’s a pity the Tories are not the Industrialists who led us to make Britain Great as they knew the value of manufacturing and allied business and its importance to the country. In the same vain it’s also a disgrace labour are still infatuated with trying to out smart the Tories and have also left the working and middle classes behind. If (IF) by chance Johnston and his band of idiots listen up and see the sense that we know is needed, they will revert to us having a proper strategic economic energy mix utilising coal to make CH4 H2 and a myriad of chemicals and oils and stop burning gas in CCGT power stations – the very reason were almost out of North Sea Gas and at the mercy of hostile forces that we have no means to stop because of Labour Tory and Liberal inept snow flake polices and their lack of understanding – and dare I say lack of caring for our country and all its people? Renewables and a complete step shift in making new houses and cities with integrated transport that are energy efficient and non polluting can follow once we are exporting to World markets and once we have the funds to do that monumental task. Notwithstanding that renewables energy will keep us in the black as an exporting nation?

  4. oldbrew says:

    Now they’re seeing the downside of blocking onshore gas. Hosing cash at wind turbine systems won’t work for very obvious – to rational folk – reasons.

  5. stpaulchuck says:

    here in America, Presidunce Xiden’s energy edicts have turned us from an exporter of oil and gas into an importer. December median temperature last year and this year are identical at 28 degrees F. My utility bill year-on-year increased by 40%!!! all do to natgas cost. The electric cost was basically flat. There was no moral justification for doing that to us. None.

  6. ilma630 says:

    These ‘authorities’ know nothing of morals, as exemplified by our (UK) Archbishop of Canterbury calling the unvaccinated ‘immoral’.

  7. Phoenix44 says:

    Perhaps these Tories should be asking why we have had these costs on our bills at all? Why has the government deliberately made energy more expensive? Its not news that the poor spend most of their income on essentials such as energy. So why has it ever been acceptable to make essentials more expensive through government loading costs on to them?

  8. oldbrew says:

    Phoenix – demand ‘management’ or so they like to think. Bad luck if cold weather comes around.

    Renewables subsidies both direct and indirect have to come from somewhere.

  9. Chaswarnertoo says:

    Anyone want to lynch BOJO yet?

  10. oldbrew says:

    What was it they thought they were ‘tackling’? Climate something or other?

    U.K. Temperatures Defy the Doomsday Climate Models and Fail to Rise for 10 Years, Met Office Data Shows
    https://dailysceptic.org/2022/01/02/u-k-temperatures-defy-the-doomsday-climate-models-and-fail-to-rise-for-10-years-met-office-data-shows/
    – – –
    What happened to planning to avoid energy crises? Nowadays it’s planning to try and soften the blows from often self-inflicted crises, while pursuing unworkable policies.

  11. Saighdear says:

    For Crisis sake: what crisis? the politicians ARE the crisis. Everything they touch leads to a crisis. Didn’t they See, see by listening , even, to what they were doing when making all these daft laws. Who votes them into power ? – another crisis of stupidity. Stupid is what stupid does so time to root out all by good education.
    Huh, and the Stirkies wish you all a happy new year ( I can’t unfortunately, with the way things are going, realistically )

  12. oldbrew says:

    Other European leaders are also boxing themselves in with their ill-conceived net zero energy policies…

    France’s Power Problems Take Center Stage Ahead Of April Elections
    By ZeroHedge – Jan 01, 2022,

    France’s power grid remains vulnerable to harsh weather, though forecasts are predicting a mild January.

    Energy security is quickly becoming a key political talking point ahead of the country’s April elections.

    Lagging renewable and nuclear energy production and high natural gas prices could create more unpopularity for Macron.

    https://oilprice.com/Energy/Energy-General/Frances-Power-Problems-Take-Center-Stage-Ahead-Of-April-Elections.html

  13. David O'Neill says:

    I suppose many of us could see this coming for years. After doing our best saying, “I told you so”, feels hollow. It really does feel like being bound and gagged, whilst having the commanding view….. of a runaway train.

  14. ilma630 says:

    Just BOJO?? What about the rest of the green gravy train, and those MPs that will say anything if they think it’ll save their seat (i.e. asses)??

  15. Stephen Richards says:

    Scrapping taxes will do very little to stem the rise in energy prices in the next 3 years. Johnson’s watermelon policies will come to a shuddering end and the tories will be out on their rears.

  16. oldbrew says:

    But the main opposition parties are even more obsessed with greencrap. They all have the problems and the solutions the wrong way round.

  17. oldbrew says:

    Soaring energy bills put Britons off paying higher taxes to save the planet
    Poll finds more than 60 per cent refusing to pay more to fund Number 10’s net zero plans due to fears over rising cost of living

    3 January 2022

    https://www.telegraph.co.uk/politics/2022/01/03/soaring-energy-bills-put-britons-paying-higher-taxes-save-planet/
    – – –
    Sadly, ‘paying higher taxes to save the planet’ is just another excuse to relieve people of their hard-earned money. What benefits do they imagine they might live long enough to see?

  18. oldbrew says:

    Price cap to ‘skyrocket by 46%’
    Summer price cap forecast to rise to around £1,865 says report

    Cornwall Insight forecasts that the domestic default tariff price cap for Summer 2022 will increase to approximately £1,865 per year, with the potential for further increases.

    The current winter 2021-22 cap level stands at £1,277 per annum.

    The authors of the report also noted the winter 2022-23 price cap could be around £2,240.

    https://www.energylivenews.com/2022/01/04/price-cap-to-skyrocket-by-46/
    – – –
    Renewables can’t fix this. Persisting with the wrong energy policies only makes things worse.

  19. oldbrew says:

  20. oldbrew says:

    WRITTEN BY MICHAEL SHELLENBERGER ON JAN 6, 2022.
    Bloomberg Finally Admits Renewables Mania Caused Europe’s Energy Crisis

    Bloomberg still pulls its punches and misdescribes the situation in some ways. The article, like many other Bloomberg articles, mislabels the deployment of renewables as an “energy transition” similar to past transitions from wood to coal and coal to natural gas, failing to acknowledge that the poor physics of energy-dilute renewables make that impossible.

    https://climatechangedispatch.com/bloomberg-finally-admits-renewables-mania-caused-europes-energy-crisis/
    – – –
    Countries can’t be powered by fantasies.

  21. GraemeNo.3 says:

    I hope the forecast of a milder January is correct, but will February and March be as well?
    Here in Adelaide we’ve had 1 hot day in November (the 30TH) 2 hot days in December.
    The last 4 days have been somewhat overcast with light rain showers despite the official forecast of warm sunny weather, so I am dubious about weather forecasts. Everybody has noticed the cool summer (so far).
    The last thing Boris needs is a really cold spell as the energy crisis will bring him down. The problem for the Tories is that the “policies” underway – raising the billing cap, raising taxes (to pay for “saving the world”, inflation esp. food, electricity) will be highly unpopular. And with the Opposition fully committed to more of the same, it opens the way for a new party to shake things up.

  22. oldbrew says:

    Tories call on Treasury to fund green energy plans
    08/01/22

    https://www.bbc.co.uk/news/uk-politics-59915299
    – – –
    One pressure group wants to dump the cost of green levies on to gas bills ‘when the price of gas settles’. 🙄

  23. oldbrew says:

    The Energy Crisis Is Sending Shockwaves Through The UK Economy
    By City A.M – Jan 08, 2022

    The energy market is highly inefficient due to the intrusion of government policy.
    . . .
    Fund manager Investec, meanwhile, forecasts that domestic consumers will be on the hook for £3.2bn for energy firms collapsing – an average of £120 per household.
    . . .
    The Resolution Foundation, an economic think tank, has warned a combination of looming tax hikes, rip roaring inflation and higher energy costs will erode Brits’ living standards, prompting the organisation to dub 2022 the “year of the squeeze”.

    https://oilprice.com/Energy/Energy-General/The-Energy-Crisis-Is-Sending-Shockwaves-Through-The-UK-Economy.html

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