Household Energy Bills: VAT

Claudia Webbe Excerpts

Tuesday 11th January 2022 Commons Chamber

[Claudia Webbe (Leicester East) (Ind)]

The Tory Government of the super-rich are presiding over a cost-of-living crisis that will hit the most vulnerable the hardest. Between the uncontrolled pandemic, inflation, soaring energy bills and the end of covid support schemes, households across the country are facing a difficult start to 2022. UK household incomes could be down £1,000 this year, according to analysis by the Resolution Foundation think-tank, as rising prices combine with welfare benefit cuts and rising raxes.

The truth is, when faced with a crisis, this Government balance the books on the shoulders of those who can least afford it, while leaving the fortunes of their rich mates untouched. The unjust policies of the Government will push more people over the brink into destitution. Inflation increased by 4.2% in October alone, the highest figure in a decade. Everyday items are getting more expensive and, on top of that, the Government’s planned national insurance increase is a regressive tax, which will hit the poorly paid the hardest, as workers’ pay packets are raided at a time when wages are failing to keep up with the UK cost of living.

That means a landlord who rents out dozens of properties will not pay a penny more, but the tenants working in full-time jobs will. Meanwhile, the billionaires, large corporations and super-rich whom this Government truly represent will continue to pay a lower rate of tax than people who are struggling to make ends meet. For all their empty talk of levelling up, the Conservatives continue to rig the economy in favour of the privileged few. Even before the current energy price rises, an appallingly high number of Leicester East residents were forced to make the impossible choice between keeping their family warm or going hungry.

When I became an MP, 5,800 households in Leicester East, or 14.4% of the constituency, were in fuel poverty. That has worsened during the pandemic to 18.6%, or 7,659 households in fuel poverty. Faced with a sharp energy price rise, the Government are now refusing to take the necessary action to combat poverty and protect families in Leicester and across the UK.

The Government must raise their ambition by setting a fuel poverty eradication target, as well as committing to end all forms of poverty for good. That can be achieved by raising taxes on those who can afford it most, the super-rich and big businesses. Failing energy companies must be brought into common ownership.

The crisis is not one that will be felt equally. Those in poverty already spend the highest share of their income on daily essentials. Poorer households pay as much as 50% more on their utility bills than the wealthiest. I will end with this: as the inspiring James Baldwin once said—

[Mr Deputy Speaker]

Order. To resume his seat no later than 4.25 pm, Grahame Morris.