Chancellor Rishi Sunak is not considering a VAT cut on energy bills to offer further support, according to the Business Secretary.
Kwasi Kwarteng defended the Government’s new policy to give all 28 million households in Britain a £200 up-front rebate on their energy bills from October, which will be recouped by hiking bills by £40 per year over five years from 2023.
Mr Sunak also promised a £150 council tax rebate for homes in bands A to D.
Mr Kwarteng, asked about a VAT cut, told Trevor Phillips On Sunday on Sky News: “VAT off fuel is a benefit that’s quite regressive actually because rich people will benefit just as much as people on lower incomes.
“That’s not something which the Conservative Party or the Chancellor want to do, they want to have more progressive taxes so that people who need the money are the ones who get it.”
Pressed on the VAT cut again, Mr Kwarteng said: “That’s up to the Chancellor, I have spoken to him and that’s not something he’s considering, he had a very full package last week.”
During the Brexit campaign the Conservatives said leaving the EU would allow the Government to cut the 'unfair' VAT on fuel bills.
