‘Urgent’ action including VAT cut needed to reduce hit to UK consumers, says Scottish Government

Urgent action is needed to reduce energy bills including a cut in VAT, the Scottish Government has said, amid a looming cost of living crisis.

Ministers have called on the UK Government to put targeted support in place for those on low incomes ahead of an energy price cap rise in April.

It comes as pressure continues to mount on the Government to protect households from the crisis as experts predict a 50 per cent hike to bills, equating to hundreds more pounds, in the Spring.

In a joint letter to UK EnergySKwasi Kwarteng, Scottish Energy Secretary Michael Matheson and Social Justice Secretary Shona Robison asked for four-nation discussions on the issue.

“The UK Government must urgently take further tangible actions in addition to what suppliers [have] already been asked to do to support those in need,” it said.

“Since the start of the Covid-19 pandemic, we have been pressing the UK Government to provide more help to vulnerable households through the Warm Home Discount scheme.