Tax experts reckon yesterday’s Autumn Statement shows the Chancellor will use “wiggle room” to reduce the pressure of rising energy bills.
Chris Sanger, Head of Tax Policy at EY said: “The Chancellor seems to be ready to use his limited fiscal wiggle room to take decisive action and ease that burden.”
He said domestic energy bills have risen 160% over the last decade and now make up more than 4.6% of household’s spending compared to 3.1% in 2000.
But Mr Sanger warned the green levy cut doesn’t guarantee an automatic drop in bills: “We need to keep reminding ourselves, however, that the success of these measures depends heavily on the take up and commitment by energy suppliers to pass these savings on to the end consumer.”
EY estimates suggest cutting electricity and gas bills by £50 per household will cost around £1bn to the Treasury coffers, he added.