Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

PM not ruling out cutting VAT on energy bills to ease cost-of-living crisis

Gas ring on a home cooker in London (Lauren Hurley/PA)
Gas ring on a home cooker in London (Lauren Hurley/PA)

The Prime Minister has said he would not “rule out” cutting VAT on energy bills as families continue to feel the squeeze from the cost-of-living crisis.

But he was non-committal when asked if he would slash fuel duty further, following the cut of 5p per litre to help cash-strapped motorists in March.

Speaking in Kigali, Rwanda, where he has been attending a Commonwealth leaders summit, Boris Johnson said the Government is doing “a huge amount” to support people “with the fiscal firepower we have”.

Asked why he had not yet cut VAT on energy bills, he told BBC Radio 4’s Today programme: “I don’t rule out that we will do it.”

He said the Government had “already cut fuel duty by record amounts”, but he acknowledged this would be “swallowed up” and added: “There may be more that we have to do.”

Pressed on whether the tax will be slashed further he said: “We want to make sure that those cuts are properly passed on to the consumer.”

He said: “I’m very happy to have an argument about tax and I’m saying some of the things that we’re already doing.

“But when it comes to energy, and the cost of people’s energy bills, tax is not enough.

“You’ve got to look at the way the whole thing works.

“And at the moment one of the problems is that people are being charged for their electricity prices on the basis of the top marginal gas price, and that is frankly ludicrous.

“We need to get rid of that system.

“We need to reform our energy markets, as they have done in other European countries.

“So that is one of the ways by reforming the market, by changing the way things work, that you can get prices down, you can bear down on costs for people.”