South Devon MP calls for price cap and VAT cut as rural homes face rising bills

On Monday, the Prime Minister hosted an emergency meeting with senior ministers and the Bank of England governor to discuss the widening economic impact of the US/Israel war with Iran. 

As I write this piece, the outcomes of the meeting are unknown. But I hope they will deliver more substantial measures than we have seen so far during this crisis. 

In the aftermath of the US and Israel attack on Iran, our government has appeared taken aback by the scale of the unfolding economic disaster. In their defence, they are not alone. 

Despite every credible commentator saying that Iran would close the Strait of Hormuz in the event of an attack, the Trump administration has been lost at sea over how to respond. In the last few days, the White House’s messaging has swung wildly even by Trump’s standards. 

Go to most news sites now and you will find articles saying Trump believes the war will be over very soon. Conversely, his Defence Secretary promises the current action is just the beginning. Clearly the adage that companies need certainty is not believed by this businessman-turned-politician. 

But here is the problem: even if you took Trump at his word, the economic shock of his action will not end any time soon. The targeting of energy infrastructure alone could set production back by years. 

It is little wonder the head of the International Energy Agency said the world is facing a worse energy crisis now than the twin shocks of the 1970s and the fallout of the Ukraine war combined. 

The evidence bears this out. In the days after the initial strike, analysts were worried about the price of brent crude hitting $100 dollars per barrel. Today, $200 dollars per barrel is not farfetched. 

The government’s cost-of-living tsar urged the Prime Minister to impose a temporary profit cap on energy companies and petrol retailers to stop them profiting too much from the Iran war. 

This would be a welcome step – last time oil prices went up, petrol stations raised their profits even more, so the public is rightly concerned about history repeating itself. 

Evidence in the heating oil and LPG markets suggest sickening levels of profiteering are already occurring. I have been contacted by multiple constituents terrified by the skyrocketing cost of keeping their homes warm. 

Last week, the Prime Minister announced a £53m support package for low-income households in rural communities who are not connected to mains gas. Though welcome, this support is in no way enough. 

Around 10% of homes in South Devon rely exclusively on heating oil to keep warm, and too many of them will fall through the cracks and miss out on support entirely, despite seeing their bills nearly double in cost. 

Temporary sticking plasters are not good enough. This crisis is sadly not going away anytime soon - we need medium-term solutions to help households manage spiralling costs. 

That is why I am calling for an immediate three-month VAT holiday on heating oil and the introduction of a proper price cap. 

I hope these measures were discussed during the Prime Minister’s meeting with senior ministers and the Bank of England. They cannot consider the limited action already taken as enough. Heating oil and LPG users deserve the same protections as everyone else on the grid. 

I know this is a scary time for many households. This war was the last thing many needed after a prolonged cost-of-living crisis. It is incumbent on the government to support the public through this difficult period and I will be doing everything I can to ensure support is given. 

If you wish to contact me about this issue or any other issue you are facing, please do so at: caroline.voaden.mp@parliament.uk