Widespread support for scrapping energy VAT among Red Wall voters

A new poll, showing that more than eight in ten voters in Red Wall constituencies back temporarily scrapping VAT on energy.

The survey of 1600 voters in 18 constituencies across the north of England found that 83% backed scrapping VAT on energy bills, which Labour has proposed and was pushing afresh in a Parliamentary debate on Tuesday, with just 6% opposed.

Support for the temporary VAT cut rose to 87% amongst those who voted Conservative at the 2019 general election when Tory success in the Red Wall constituencies was a key factor in the dramatic increase in the government’s House of Commons majority.

The survey, which was commissioned by the Energy and Utilities Alliance (EUA) and conducted by YouGov, also showed that 20% of Red Wall voters have avoided heating their home “every day” in the past week as much as they would have liked due to associated costs.

Another 14% said they have rationed their energy use “at least three or four times” over the past week and a further 20% said they had done so “at least once or twice”.

Two-thirds of those polled believed that “heating you home was more of a necessity than a luxury”, rising to 79% for over 65s.

In addition, 32% of employed Red Wall residents surveyed said they are working from home more often than before the pandemic began, adding to home heating bills.

More than half (57%) said that rising energy bills is having a big impact on their personal finances, while three quarters (75%) said it is an “important” issue for them.

Commenting upon the results, EUA chief executive Mike Foster said: “These detailed poll findings, in key political battleground seats, suggest that the government has a major problem on its hands. Overwhelmingly, people want to see VAT scrapped on energy bills, something that Boris Johnson wanted as far back as 2016, but the chancellor Rishi Sunak has blocked. Red Wall voters have sent a very clear signal in this poll of what they want.

“Heating a home is viewed as a necessity, yet consumers are consciously not doing so as a means to keep bills down. This should also ring alarm bells for ministers. The least well off are being hit the hardest as they spend a disproportionate amount of their income on energy bills, compared to those who are better off. This should justify any action the government takes.

“Working from home has also led to increases in domestic energy bills, something the government should acknowledge and again action such as scrapping VAT can be justified as a Covid-related measure.

Meanwhile, the Association for Renewable Energy and Clean Technology (REA) has also published a six-point plan to help tackle the energy bill crisis.

It urged the government to:

• Move ‘green’ levies, which must be ring fenced at an equivalent value, into general taxation
• Suspend VAT on energy bills for a year to mitigate against rising energy bills
• Expand eligibility and increase the value of the Warm Homes Discount
• Remove VAT on all domestic renewable and clean technology to help households move away from fossil fuels
• Establish an effective home insulation scheme by spring 2022, ensuring all houses to be EPC rating C at a minimum, where technically feasible, by 2024/25
• Introduce a commercial loan scheme to support energy suppliers manage soaring wholesale gas prices and protect customers from additional costs

REA chief executive Dr Nina Skorupska said: “While the investment the ‘green’ levies provide has been crucial for driving the energy transition forward and must be protected, we believe that it would be more appropriately sourced from general taxation.

“However, suspending VAT and boosting support schemes are relatively short-term measures. What the Government needs to do in parallel is provide a catalyst to better insulate our homes and drive up the installation of domestic renewables and clean technology to protect households from volatile gas prices.

“We want the financial burden of fossil fuels to be a non-issue within five years – to do that the Government must rapidly accelerate the shift to renewables and clean technology.”

During question time in the House of Commons for the Department for Business, Energy and Industrial Strategy on Monday morning, secretary of state Kwasi Kwarteng said rising energy bills is “squarely at the heart” of the government’s concerns.