Budget: Lib Dems Unveil £14 Billion Breathing Space Package To Cut Energy, Transport And Hospitality Costs
Tom Gordon MP for Harrogate and Knaresborough said: "This budget should be about putting money back in your pockets. The Lib Dem package would save households an average of £350 on average, cut heating bills, get people moving and give hospitality a boost.
"I've listened to our local businesses. They've been hammered over the last few years, our budget proposal and that crucial VAT cut will give Harrogate and Knaresborough's high streets a fighting chance."
Liberal Democrats unveil fully funded £14bn emergency package to cut household energy and transport costs and support hospitality for 18 months - saving households £350 on average
Plans include an Essential Energy Guarantee, 10p fuel-duty cut, cheaper rail and bus fares and pavement EV charging, and a temporary 5p hospitality VAT cut
Package fully-funded by windfall tax on unearned bank profits, a clawback on energy-network monopolies and additional oil and gas tax receipts triggered by Trumpflation
Treasury Spokesperson Daisy Cooper warns Chancellor that averting a fresh cost-of-living squeeze will decide whether he “passes or fails” his first test as Chancellor on October 28th
At the upcoming Budget, the Liberal Democrats will call on the Chancellor to introduce an emergency £14bn “breathing space package” to cut energy and transport costs and support high street businesses over the next 18 months. The fully funded package would combine an Essential Energy Guarantee with cuts to fuel duty, rail and bus fares, VAT on kerbside EV charging and hospitality VAT.
The Liberal Democrats warned that households face painful price rises in the new year, with the energy price cap expected to rise above £2,000, and a 3p rise in fuel duty is pencilled in for the same month. March will then see the end of the Government’s electricity bill VAT cut, a 4.2% rail fare increase, and a further 2p fuel duty hike.
The party’s proposed Essential Energy Guarantee would cut average annual electricity and gas bills by £100, alongside additional support for households with children and disabled people.
On transport, the Liberal Democrats are proposing a 10p cut to fuel duty, a 10% cut to rail fares, £1 bus fares and a reduction in VAT on kerbside EV charging to 5%.
The package would also temporarily cut hospitality VAT by five percentage points to 15%, reducing costs for pubs, restaurants and cafés, to bring down the cost of a night out, while supporting struggling high streets.
The £14bn package, saving households £350 on average, would be fully funded through a windfall tax on unearned bank profits arising from the legacy of the Quantitative Easing programme, a clawback on energy network monopolies, and additional oil and gas tax revenues triggered by “Trumpflation” - avoiding the need for extra borrowing or permanent tax rises.
The party warned that the OBR’s living standards forecast will set a definitive test that Chancellor John Healey will either pass or fail on 28th October.
The emergency package comes on the heels of the party’s announcement that it would use the growth dividend generated by joining the EU Single Market and Customs Union to raise the tax-free personal allowance to £15,000 and the 40p income tax threshold to £56,000 over five years, giving basic rate taxpayers a £680 tax cut by the end of the next Parliament.
Liberal Democrat Treasury Spokesperson Daisy Cooper MP said:
“Families are facing a brutal double whammy of rising bills and disappearing support. Energy costs are set to go up again, filling up the car keeps getting more expensive, and household budgets are being squeezed from every direction.
“The Chancellor has a choice. He can stand by as families are hit with yet another cost-of-living squeeze, or tax the huge unearned windfalls enjoyed by the big banks and use that money to give people some breathing space.
“Our £14bn emergency package would cut energy and transport costs and give struggling high streets a fighting chance. It would mean cheaper bills, cheaper journeys and a bit more money left over at the end of the month.
“People shouldn’t have to think twice about taking their children out for a meal or meeting friends at their local pub because the basics have become unaffordable. The Chancellor should use this Budget to put money back into people’s pockets and give people the breathing space they’re crying out for.”
Post Budget Breakfast with Tom Gordon MP
Tom Gordon MP has asked the Chamber to host a post-Budget breakfast so he can hear directly from businesses across Harrogate and Knaresborough about what the Budget means for them.
We will be joined by local business experts who will give their take on the announcements and what they are likely to mean for firms in the district. After that, the floor opens to Tom, who wants to put his questions to you and hear your feedback, concerns and priorities first hand.
This is a chance to get your views in front of your MP while the detail is still fresh and to help shape what he takes back to Westminster.
For further details on how to book please email chiefexec@harrogatechamber.co.uk
