Janet Finch-Saunders MS has criticised Labour’s plans on energy costs after Andy Burnham pledged to reduce electricity bills by cutting VAT, saying the party has failed to explain how it would cover the cost of the tax cut.
The Office for Budget Responsibility has warned that measures to reduce taxes must be funded, meaning higher taxes or increased borrowing could be required to cover the cost. Janet Finch-Saunders said families and businesses across Wales need practical action to tackle rising energy costs, but also deserve clarity on how any commitments will be delivered without placing further pressure on public finances.
Janet Finch-Saunders, Senedd Member for Bangor Conwy Môn said:
“People across Wales are understandably concerned about the cost of energy, and any serious plan to reduce bills must be welcomed. However, Labour must be honest with people about how these promises will be paid for.
A policy announcement is only meaningful if there is a clear and credible plan behind it. If reducing bills simply means higher taxes or more borrowing elsewhere, then households and businesses could end up paying the cost in another way.
The Conservatives have set out a different approach, with a plan to reduce household energy bills by £200 and cut business electricity costs by 20%, funded by ending old renewable energy subsidies and scrapping net zero subsidies.”
