VAT Cut: “You can’t even do your weekly shop with £45” says Luke Taylor MP as he urges Burnham to ‘steal’ bolder Lib Dem plan for London households.

A senior Liberal Democrat in London has hit out at Andy Burnham’s plan to remove VAT from domestic electricity bills in October as “a weak first step” which does not go far enough to help struggling households in the capital.

Liberal Democrat MP and Spokesperson for London, Luke Taylor, says the Government’s scheme to cut the rate of VAT applied to household electricity from 5% to 0% “won’t touch the sides” for most Londoners who are facing some of the greatest cost of living pressures anywhere in the country.

Instead he has called on the new Prime Minister to “steal” the Lib Dems’ ‘Essential Energy Guarantee’ - a plan that would save the average household more than double the amount of the VAT cut (£100 vs £45).

The plan, which would see every household receive a basic energy allowance (equivalent to 50% of average energy consumption) at a discounted rate was unveiled by the party last month, and would be funded by clawing back £7 billion in unexpected windfall profits from monopoly energy network operators.

Families would receive extra allowances for children, and the most vulnerable - such as people with disabilities or on the lowest incomes - would receive the discounted rate on all their energy use.

According to House of Commons Library data, almost 1 in 10 households in London (9.3%) are in fuel poverty, struggling to afford their most basic energy needs.

Liberal Democrat spokesperson for London MP for Sutton and Cheam Luke Taylor said:

“A Liberal Democrat PM would be standing up against the powerful energy companies who are making record profits, not fiddling around the edges with a VAT cut that simply won’t touch the sides and leaves the energy giants raking it in.

“People in this city are already living with the highest housing costs, the greatest child poverty level in the nation, and rising transport fares; when you remember all that, £45 seems utterly measly. You can’t even do your weekly shop with that!

“Burnham promised to be radical, and is trying to dress this up as urgent action, but it’s just a weak first step from the new Prime Minister.

“He has a one-off chance in the next few months to set a new direction for the country and tackle the Cost of Living crisis, but he won’t get there like this. He should do what all good Labour PMs do and steal a Lib Dem plan off the shelf - our Essential Energy Guarantee.

“It would save households a lot more money and make a bigger difference in the long-run too - because it adds a stronger layer of protection when prices fluctuate, so people can have peace of mind that roughly the first half of their energy use will be charged at a discounted rate no matter what.”