Boris Johnson pours cold water over Tory calls to cut VAT on fuel bills
Boris Johnson pours cold water over Tory calls to cut VAT on fuel bills... despite his vow that scrapping it could be a Brexit dividend Prime Minister Boris Johnson has rejected calls to cut VAT on fuel But he insisted another way to ease cost of living would be found by ministers Energy firms, Labour and some Tory MPs have pressured to axe VAT on fuel
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Boris Johnson rejected calls to cut VAT on fuel last night but insisted ministers would find another way to ease the cost of living crisis.
The Prime Minister, who once suggested that ending the hated tax on domestic fuel would form part of a Brexit dividend, warned the move could prove a ‘blunt instrument’ that would benefit better-off families more than the needy.
But he said ministers would ‘continue to listen to businesses and consumers about how to abate the costs of energy’. Energy firms, Labour and some Tory MPs have piled pressure on ministers to axe the 5 per cent VAT rate on domestic fuel this winter.
Slashing the levy would cost the Treasury £1.7billion and knock around £60 off an average household fuel bill.
