Sunak Stops the VAT Vanishing Act: Energy Bills Stay Steep, Yet Hope Holds a Twisty Wave
“It’s not right that unelected bureaucrats in Brussels impose taxes on the poorest and elected British politicians can do nothing.”
Why the Tax Tango? The Big 1.6 bn Dilemma
- Sunak’s Stance: The Chancellor says dropping VAT would hand the Treasury a bill of roughly £1.6 bn—so it’s a heavy snook‑in‑lace for the budget.
- Energy Shockwave: Energy prices have been doing the cha-cha with no partner, sending suppliers to the brink of bankruptcy.
- The Promise Pulse: During the 2016 Brexit campaign, Boris and Michael Gove (yes, the UK’s lawyer‑turned‑politician) vowed to yank the VAT “gag” that kept the gas and electricity sloshing up the peaks.
Labour’s Rhetoric: “Did We Promise? Did We Deliver?”
- Rachel Reeves’ Rap: “They said it in the referendum campaign, so why the wait?”
- Why It Matters: Reeves argues that the rise is a perfect storm for a VAT cut; it would be instant, automatic, no audit trail, no long waiting lists.
- Subsidy Slide: Sunak fears a misguided squeeze of wealth would fund a few affluent households > the hard‑pressed folk.
Split Decision: The “Targeted” Quandary
Sunak worries that the cut could be a “poorly targeted” subsidy for everyone but the star‑struck, drowning in gas bills. Re‑think the calculator!
Bottom Line: The Battle Continues
Sunak stays firm. Boris promises a future, and voters urge the government to honor campaign‑pacts or risk the nickname “the untouchable Tax, the uncut VAT” forever. Keep an eye on the spill‑over, oh electrical tides… and hope the app may not be buried in bureaucracy.
