UK chancellor urged to remove ‘hidden taxes’ from energy bills
Over 120 UK organizations have urged the Chancellor to remove hidden taxes from energy bills to reduce costs for consumers and businesses. The signatories argue that shifting these levies to government funding would lower average household bills by up to £250 annually and cut business electricity prices by 20%. This call comes as the UK faces some of the highest energy costs in the developed world, with recent geopolitical tensions further driving up prices.
- ▪More than 120 organizations, including Energy UK and the CBI, signed a letter requesting the removal of levies that currently account for 10% of energy bills.
- ▪The letter argues that moving these costs to the government would reduce average household bills by as much as £250 per year.
- ▪UK energy bills are currently 70% higher than they were in 2021, contributing to business closures and job losses.
- ▪Chancellor John Healey is scheduled to present his first budget on 28 October, following previous moves by Rachel Reeves to shift 75% of levy funding to taxation.
- ▪Recent geopolitical conflicts, including the Iran war, have pushed gas and electricity prices to their highest levels in three years.
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| Original publisher | The Guardian — World |
| Canonical URL | https://www.theguardian.com/money/2026/sep/11/chancellor-remove-hidden-taxes-energy-bills |
| Publication time | Fri, 11 Sep 2026 12:37:01 GMT |
| Retrieval time | 2026-09-11T13:14:16.473Z |
| Last seen | 2026-09-11T13:14:25.690Z |
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The letter says the UK faces some of the highest energy costs of any developed nation. Photograph: Christopher Thomond/The GuardianView image in fullscreenThe letter says the UK faces some of the highest energy costs of any developed nation. Photograph: Christopher Thomond/The GuardianEnergy billsUK chancellor urged to remove ‘hidden taxes’ from energy billsBusinesses, charities and other groups sign letter calling for levies to be paid by the governmentMark SweneyFri 11 Sep 2026 08.37 EDTLast modified on Fri 11 Sep 2026 08.45 EDTSharePrefer the Guardian on GoogleMore than 120 organisations including big businesses and charities have called for the removal of “hidden taxes” added to energy bills to help reduce costs for consumers and prevent businesses closing.In a letter to the…
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