Cut taxes on energy bills before giving bailouts, Badenoc...

What’s Happening

So get this: The Tory leader refuses to rule out direct payments to households if bills spike but says this would come at a cost.

Cut taxes on energy bills before giving bailouts, Badenoch says 7 hours ago Save Becky Morton Political reporter Save BBC The government should cut taxes on energy bills before considering bailouts, Kemi Badenoch has dropped. The Conservative leader told the BBCs Sunday with Laura Kuenssberg programme direct payments to households would come with a cost in the form of higher taxes. (we’re not making this up)

But, when pressed she would not rule out direct payments if energy bills spiked.

The Details

Last week Chancellor Rachel Reeves dropped the government would provide support to “those who need it most ” if energy bills spiralled because of the US-Israeli war with Iran. Iran has effectively blocked the Strait of Hormuz - one of the worlds busiest oil shipping channels - leading to soaring wholesale oil and gas prices.

Energy bills for millions of people in England, Scotland and Wales are about to fall for three months from April under Ofgems price cap, which is updated quarterly, but after this they are likely to increase because of the impact of the conflict. What is happening to gas and electricity prices?

Why This Matters

Why the Strait of Hormuz matters so much in the Iran war Asked who should get support if energy costs rise, Badenoch told the BBCs Sunday with Laura Kuenssberg programme she wanted to see the government “taking the burden off everybody” on bills. She accused the government of prioritising people on benefits and increasing taxes for everyone else. The Conservatives have already promised to scrap green levies on energy bills, including the Renewable Obligations Certificate and the Carbon Tax, which help fund renewable energy projects.

Market watchers are paying close attention to developments like this.

Key Takeaways

• Pressed over whether she was ruling out direct payments to households, Badenoch dropped: “Im not ruling out anything.
• What Im saying is lets start off with taking the taxes [off].
• ” She added: “Lets not pretend that these huge bailouts dont come with a cost.

The Bottom Line

What Im saying is lets start off with taking the taxes [off]. ” She added: “Lets not pretend that these huge bailouts dont come with a cost.

Is this a W or an L? You decide.