Watford politicians react to Liz Truss's fuel bills plans

Several reports, though unconfirmed, suggest Liz Truss’s government will cap energy bills as they are until at least January by borrowing tens of billions and giving it to energy firms.

The money will be paid back over years by the taxpayer, rather than through windfall taxes on energy companies’ profits as opposition parties have proposed.

Watford’s mayor Peter Taylor said: “If reports are correct, then this plan will provide reassurance to thousands of families across Watford who have been worried about the cost of living emergency.

“However, this will be short lived if, rather than paying for this from bumper profits from energy companies, residents will be paying for this policy for years to come.”

Watford's Lib Dem mayor Peter Taylor. (Image: Watford Liberal Democrats)

Amidst the 80 per cent bills hike scheduled for October, BP posted £6.9bn profits between April and June while Shell raked in £9.5bn.

Mr Taylor said the Liberal Democrats were first to call for a windfall tax to fund price freezes – though Ms Truss previously said she does not support the policy, branding it “a Labour idea”.

Labour’s parliamentary candidate for Watford, Matt Turmaine, said freezing bills would be “a start” but if it is funded by borrowing “it is not saving anyone anything”.

“It is just inflicting more ongoing pain for consumers when companies are making huge oil and gas profits,” he added.

Matt Turmaine, Watford Labour's parliamentary candidate. (Image: Watford Labour)

Watford’s Tory MP Dean Russell was also asked if he agreed with making the public pay for help rather than energy firms. He did not respond.

In May the government did introduce a windfall tax, which Mr Russell previously said was “on top of the existing 40 per cent headline rate of corporation tax, raising around £5bn over the next year to support households”.

“This is something I support, as it is not fair that they are recording record profits when so many are struggling,” he added.

Watford MP Dean Russell. (Image: Simon Jacobs)

According to the BBC, Shell and BP have paid almost no tax in the UK in recent years, and both received more money back from the government than they paid every year from 2015 to 2020 (except 2017, when Shell paid more than it received).

Read more

• Energy bills should be cut, says Watford's MP
• Winter will be a time for compassion as energy bills soar

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