The former chancellor seemed more likely to oppose the measure that would save households up to £160 on their money bills. But after that Liz Trusshis last remaining opponent in the Tory leadership game, took the lead in the polls, Mr Sunak appeared to be changing course. It comes after he claimed the measure would be “disproportionately beneficial to wealthier households” when questioned about it in February.
Mr Sunak previously warned MPs: “There would be no guarantee that suppliers would pass on the discounts to all customers, and we have to be honest with ourselves: This would become a permanent government subsidy in everyone’s accounts, a permanent subsidy worth of £2.5 billion a year, at a time when we are trying to rebuild public finances.”
Mike Foster, head of the Energy and Utilities Alliance, said he is “delighted” that Mr Sunak has now changed his tone, but warned that the measure is not enough to tackle the energy crisis alone.
He told express.co.uk: “I am delighted with Rishi Sunak’s sudden switch to reduce VAT on utility bills.
“We have been advocating this for over a year. He had a chance to do something and he didn’t.
“But now he’s calling for it and that’s great. He’s a convert and that’s £160 more in people’s pockets to pay the bills.
“In the grand scheme of things, it’s not about (the energy crisis), but it’s a good thing.”
It comes after another horror price cap warning was issued this week, with experts predicting the annual cap could reach nearly £4,000 in January.
And Mr Foster was not alone in being taken aback by the former Chancellor’s “screeching” U-turn.
He was mocked by a wave of Liz Truss supporters for the move, including Prime Minister Boris Johnson.
READ MORE: Energy savings: Smart home system could cut £600 on energy bills
Speaking at the Commonwealth Business Forum in Birmingham, Mr Johnson said: “We are now entering the next phase in the great relay race of politics.
“By the way, I didn’t think it was a relay race when I started.
“I can assure you that the baton will transfer seamlessly and invisibly into someone else’s hand.”
The Prime Minister added: “I give you this assurance, they will continue with the same program, cut taxes, simplify regulation as much as possible, take advantage of all our new regulatory freedoms, get rid of any impediment from solvency to MiFID [financial regulation] VAT on fuel – turns out to be easier than we thought.”
Business Secretary Kwasi Kwarteng, who also supports Ms Truss to become the next Prime Minister, also targeted Mr Sunak.
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