Speaking in the British Parliament today, Rishi Sunak said that within the scope of the support package, an additional 25 percent taxation application for energy companies will come into effect, and energy support of 400 pounds will be provided to all households in the autumn.
Rishi Sunak stated that the energy sector has made “extraordinary profits” for various reasons, especially the Ukraine war, and that it should be taxed fairly.
Sunak said that the additional taxation decision to be applied to energy companies will only be lifted when prices return to normal levels.
WHAT MEASURES HAS THE GOVERNMENT TAKE?
Sunak stated that about 75 percent of the government’s support will be given to the most struggling and most vulnerable groups in the country.
As part of his statement, Sunak announced that the one-off £200 discount on electricity bills, which was implemented in February, was increased to £400 and the repayment requirement was lifted.
Additional energy support of £300 for the winter months to eight million retirees and a one-time benefit of £150 for people with disabilities were also included in Sunak’s explanations.
Sunak said, “We all have a responsibility to help those who are most affected by the high inflation and energy crisis we are facing. Therefore, within the scope of what I have announced today, I am focusing on the most vulnerable groups in society.”
“I promised to stand by the people. I stand by my word with the support package I announced today.”
“U-TURN”
In the UK, energy, food and oil prices have increased in an unprecedented way in recent months, while inflation has reached the highest level in the last 40 years with 9 percent annually.
E.On, one of the UK’s largest energy companies, warned that 40 percent of its subscribers “will face fuel poverty” by October. Energy regulator Ofgem said there would be an annual increase of £800 in energy bills.
Keir Starmer, the leader of the main opposition Labor Party, previously proposed the additional taxation package to be applied to energy companies, which the government announced today, but this proposal was rejected by Prime Minister Boris Johnson.
The ruling Conservative Party’s change of decision, which has said that it does not want to increase taxes and focuses on growing the economy, was evaluated as a “U-turn” by the opposition.
Rachel Reeves from the Labor Party pointed out that the government was late in making this decision and many families were left in a difficult situation.
Reeves said the government had “screamed and kicked” at this point.
Some lawmakers accused the government of waiting until today for less public discussion of the detailed report, released yesterday, which found that it had violated its own Covid rules.