April Tax Rise To Go Ahead As Tory Mps Threaten To Rebel Over Energy Bills

Conservative MPs warned the prime minister that expanding existing support schemes would not be enough to help consumers hit by major price increases, as Downing Street ruled out delaying a tax rise this April.

- Jessica Elgot

The chancellor, Rishi Sunak, said yesterday the Treasury was examining ways of mitigating the impact of soaring energy prices on consumers when the price cap is reviewed in February. The effect of the new cap will be felt from April, the same month the 1.25 percentage point rise in national insurance contributions (NICs) will come in.

But a number of senior Tories told the Guardian that measures such as expanding the warm homes discount for vulnerable families would do nothing to help the majority of their constituents – saying mailbags were “filling up” with concerns.

MPs have repeated calls for a VAT cut on energy bills and the removal of environmental levies – even if it meant paying for the beneficiaries out of direct taxation.

Craig Mackinlay – the chair of the net zero scrutiny group of Tory MPs who say they are concerned about the cost and effectiveness of the government’s environmental measures – said that would “smoothen the immediate load on people … I think that would be a better system, perhaps only temporarily until we get more stability in the international energy market”.