Rishi Sunak promises to cut VAT from energy bills in cost of living crisis U-turn

One-year tax holiday worth £160 to households as costs predicted to soar by more than £1,000

Rishi Sunak has promised to temporarily scrap VAT on domestic fuel bills if he becomes prime minister, despite opposing the move for months while chancellor.

Labour has long called for the levy to be lifted as the cost of living crisis bites millions of families. But Mr Sunak voted against the move in January, and in February told the House of Commons it would “disproportionately benefit wealthier households”.

He later said it would be “silly” to offer additional help with bills ahead of an Ofgem decision on the energy price cap in October.