Household Energy Bills: VAT Debate

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Department: HM Treasury

Household Energy Bills: VAT

Naz Shah Excerpts
Tuesday 11th January 2022

(2 years, 3 months ago)

Commons Chamber
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Naz Shah Portrait Naz Shah (Bradford West) (Lab)
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People are having to make difficult choices in their shopping lists to keep food on their family table. People are having to decide between staying warm or facing the chill this winter because of rising energy bills. People are literally emptying out their savings to cover everyday costs because of the rising level of inflation.

The Prime Minister and his Government have lost their grip across the board and are tearing down our economy and our country with poor planning and incompetence time and time again. They had years to plan for Brexit and boost skills and jobs for workers in Britain, yet all five flagship policies in their “plan for jobs” are failing. Last September the British population felt the brunt of their poor planning when they had to queue for hours just to get fuel for their cars, due to a shortage of HGV drivers. The energy price rises set to take place in April will be catastrophic, with bills set to rise on 1 April by another 50% to as much as £2,000 a year for an average household paying by direct debit.

The Prime Minister and his Government are in complete denial and empty of any solution to this crisis, probably because the cost of living crisis does not affect him. When the going gets tough and the Prime Minister has to slum it out, he texts his Downing Street chum and he can simply drop a message to his rich mate the Lord, who will cough up from the coffers to fund the designer Lulu Lytle-inspired £840 a roll wallpaper, or a Baby Bear sofa for just under 10 grand, or a three grand Lily Drum table. What is an extra 15 quid on the Christmas shopping list for him this year compared with last? How will the rise in inflation, the 24% increase in petrol prices, rents at the highest level in 13 years, or the price to heat our homes going up by 50% this April bother this Prime Minister, or anyone on the Government Benches? The Government are totally out of touch with what it is like for real families in Britain—working-class people, people in Bradford West and across this country.

That is why we, the Labour party, are providing a solution to protect families, especially in places such as Bradford West, to protect lower and middle-income earners—and pensioners—who have already been squeezed by years of underfunding and under-investment, and face the choice between food and heating. We have the highest rates of child poverty in Yorkshire. This is not something that we did not know was going to happen; we knew it was going to happen. The Prime Minister stood there and said that inflation was all made up; yet two months later it is the highest that it has been in decades. The Government are in complete denial and they fail every child and every person in Bradford West by not supporting our motion.