Lib Dem councillors urge the Government to deliver a cost of living package in the Budget

Hinckley and Bosworth Councillor Michael Mullaney backs Liberal Democrat call for an emergency cost of living package, as Government help for households times out by spring.

The package includes calls for an Essential Energy Guarantee that would cut the average household energy bill in Hinckley and Bosworth by £100 a year, as well as a 10p cut in fuel duty, cuts to rail and bus fares, and a temporary 5p VAT cut on hospitality.

The full plans would provide breathing space for the next 18 months, at a total cost of £14bn over the next year and a half, fully funded through a windfall tax on the big banks, a clawback on energy network monopolies, and extra oil and gas revenues caused by Trumpflation.

A cost of living support package would give families in Hinckley and Bosworth breathing space, Hinckley Liberal Democrat Councillor Michael Mullaney has said.

Michael Mullaney says households risk being left unprotected against a sequence of rising bills as key pieces of temporary Government support are set to expire by the spring, alongside an increase in January to the energy price cap.

According to House of Commons Library data, over 4,400 local households in Hinckley and Bosworth are in fuel poverty, struggling to afford their most basic energy needs.

To protect household budgets, the Liberal Democrats are urging the Chancellor to bring forward an emergency package to provide breathing space for the next 18 months, at a total cost of £14bn over the next year and a half, fully funded through a windfall tax on the big banks, a clawback on energy network monopolies, and extra oil and gas revenues caused by Trumpflation. The three-point plan includes:

• An Essential Energy Guarantee to cut average annual bills by £100. Every household would receive a basic energy allowance, equivalent to 50% of average energy consumption, at a discounted rate, with extra allowances for children and the discounted rate on all energy use for disabled people and those on the lowest incomes. The poorest 20% would save an average of £140.
• An emergency transport package cutting fuel duty by 10p (bringing down prices at the pump by 12p per litre), slashing bus fares to £1 from the current £3 cap, cutting rail fares by 10%, and making it cheaper to drive electric vehicles by cutting VAT on public charging and reviewing unfair network costs.
• A temporary VAT cut for hospitality, accommodation and attractions, to rescue struggling high streets far beyond the Government's limited £150 million fund for music venues and pubs. The party also calls for an overhaul of the broken business rates system and for the National Insurance Contribution (NIC) hike to be abandoned.

The party warned that the OBR’s living standards forecast will set a definitive test that Chancellor John Healey will either pass or fail on 28 October.

The package would be fully funded without extra borrowing or permanent tax rises, through a windfall tax on banking profits related to the quantitative easing programme, a clawback on energy network monopolies, and recycling the extra oil and gas revenues triggered by “Trumpflation”.

Liberal Democrat Councillor Michael Mullaney said:

"Family finances in Hinckley and Bosworth are a ticking time bomb. A cost of living support package would give families breathing space, as over 4,400 households in our area are already worried every day about keeping their homes warm.

"People cannot afford another Budget of timid half-measures. The Chancellor must act with an emergency cost of living package, starting with an Essential Energy Guarantee.

“The Liberal Democrats plans would ensure nobody has to choose between heating and eating and put cash back into people’s packers in Hinckley and Bosworth.”