Brexit Watch, September 5, Catherine McBride
LIZ TRUSS has been elected leader of the Conservative & Unionist Party and will now go on to be invited to form a Government by HM the Queen. Here are eight points she should consider to tackle the energy crisis.
1. Cut VAT and CCL on energy bills for Domestic and Business use
VAT on energy bills, electricity, gas, heating oil and solid fuel: all are presently rated at 5% for residential use and 20% for businesses. This is madness. Energy is existential for businesses. Whether they are making cement or running a dealing room, without power – they’re closed.
Businesses, like governments, don’t have any money of their own. Their money comes from their customers, so the VAT and Climate Change Levy (CCL) added to their energy bill will be added to their cost of production, which will be recouped in the price of their products, that may also have VAT added to their sale price. The Government can hardly claim to be worried about inflation if they are happy to increase the cost of production of most goods and services with VAT as well as the final sales price of the same goods and services.
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