Business
Take some green levies, not VAT, off bills to cut energy costs, Treasury urged
The Government should cut energy bills by removing renewables subsidies, reducing system costs and implementing efficiency standards for landlords, a think tank has urged.
Green Alliance says the measures could reduce the typical household fuel bill by £178 a year by 2030 – and much higher savings of up to £587 for families renting draughty, inefficient homes.
Reports suggest the Treasury is eyeing up removing VAT from energy and cutting efficiency programmes paid for through bills, as it seeks to bring down costs for households to tackle the cost-of-living crisis and counter criticism about the price-tag attached to net zero policies.
Green Alliance said the Government must act immediately to lower bills, with the average household paying £478 more in October 2025 than four years earlier – and nine million UK households in fuel poverty.
But the environmental organisation said cutting VAT and energy efficiency programmes would be the wrong way to do it.
Green Alliance senior policy adviser Stuart Dossett said: “We are still very much living in a cost-of-living crisis, which has been a fossil fuel-driven energy crisis.
“There are households up and down the country that are being battered by this, and many people, as we move into winter, will be unable to heat their homes to a comfortable temperature because bills are too high.”
While the Government has “rightly” recognised the need to bring down costs, Mr Dossett argued that bringing VAT rates down to zero could immediately cut bills, but would be a “forever more move”, as it would be politically difficult to reverse.
Using the £2.3 billion the VAT cut would cost the Treasury to take some green levies – focusing on subsidies for renewables dating back more than a decade – off bills and into government spending would still reduce consumer costs.
These would include the feed-in tariffs for household solar power and some of the “renewables obligation” subsidies for early clean electricity projects such as wind farms.
It would have advantages over zero-rating VAT as the schemes’ costs will decline until their conclusion in 2037, making it a better value move for the Government, Green Alliance argues.
And as they are levied on electricity bills, removing them would give greater savings to those who rely on direct electric heating – who tend to be lower income and in deep fuel poverty because of high running costs – while also incentivising take-up of clean electric-powered heat pumps.
Mr Dossett also warned the Government should not cut spending on energy efficiency measures, which pay for insulation and other improvements for households in fuel poverty via a levy on bills.
“If the Government is serious about lowering people’s bills for good, the way to do that is investing in insulating our homes, not raiding schemes that have helped families lower their energy costs as a way of making their sums add up in the Budget,” he said.
A new paper from Green Alliance launched ahead of the Budget also says that system costs could be reduced by 2030 with a series of “no regret” options, including lowering voltage levels on the low voltage network as modern appliances are using more power than they need.
Green Alliance also advocates for putting gas power plants in a “strategic reserve”, removing them from the power market and enabling system operator Neso to determining when to generate electricity from gas, to prevent high gas prices pushing up the cost of power.
And measures to reduce the financing costs of new renewables could cut how much they cost to build and the price of the electricity they generate, while boosting their deployment and reducing the UK’s exposure to expensive fossil fuels.
The think tank also calls for the Government to implement a private rental sector minimum energy efficiency standard equivalent to Energy Performance Standard (EPC) C by 2030, to help people in rented accommodation who are often the most vulnerable to high bills.
Mr Dossett said the move would be “crucially important for lifting huge swathes of households that are currently experiencing fuel poverty out of it”.
Other measures including installing smart meters that could also help people reduce energy use and cut their bills.
Taken together, a typical household could save up to £178 a year by 2030, and a family in rented accommodation that is improved from an EPC E to a C rating and gets a smart meter, could save up to £587 in total, Green Alliance said.
A spokesperson for the Department for Energy Security and Net Zero (DESNZ) said the Government did not comment on speculation over tax changes.
But they said: “The Government’s clean energy mission is exactly how we will deliver cheaper power and bring down bills for good.
“Our mission is relentlessly focused on delivering lower bills for the British people, to tackle the affordability crisis that has been driven by our dependence on fossil fuel markets.”
The spokesperson said the Government would publish an update on plans to make private rental homes reach EPC C standard by 2030 in “due course”, and was exploring options for rebalancing gas and electricity prices.
The US-Israel Iran war has halted almost all traffic in a key waterway and the price Brent crude has surged.
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Crunch talks between resident doctors and the Government are set to continue in a bid to avert strike action.
Sir Keir Starmer has given the resident doctors committee of the British Medical Association (BMA) a deadline to reconsider a deal on pay and jobs which includes an offer of thousands of extra NHS training posts.
It is understood the proposal will be removed from the deal if resident doctors in England press ahead with a six-day strike from April 7 in a row over jobs and pay.
Dr Jack Fletcher, chairman of the resident doctors committee of the union, said: “It is wrong for Government to withhold desperately-needed jobs as part of negotiating tactics.
“Anyone who works in the NHS knows that patients need these 4,000 jobs created as soon as possible.
“We made that very clear to Government in our meetings today.
“We are not interested in arbitrary deadlines – we will be looking to get this dispute ended right up to the last minute.
“We believe there is a deal there to be done if Government is willing to withdraw the changes it made at the last minute that reduced the funding for pay rises. Talks continue.”
It comes as senior medics announced they were escalating their disputes with the Government.
Consultants and other senior doctors are to be balloted on industrial action after ministers announced they would be getting a 3.5% pay award.
Simultaneous ballots of consultants and specialist, associate specialist and specialty (SAS) doctors will run from May 11 until July 6.
Addressing resident doctors, Prime Minister Sir Keir Starmer wrote in The Times: “The truth is this: no-one benefits from rejecting this deal.
“Resident doctors will be worse off. Instead of improved pay, progression and support, they will receive the standard pay award this year, with none of the reforms that would have strengthened their working lives.”
The deal sets out a minimum of 4,000 new additional specialty posts to be delivered over the next three years.
NHS England boss Sir Jim Mackey confirmed the offer to expand training places will “come off the table” if an agreement is not reached.
The walkout, which is due to run from 7am on April 7 until 6.59am on April 13, will be the 15th round of strikes by resident doctors in England since 2023.
In a letter to health leaders, Mike Prentice, national director for emergency planning at NHS England, wrote: “We expect this round to be challenging as there is a shorter notice period, bank holidays within the notice period and the action itself falling during the Easter holidays.
“This will represent a significant strain on staffing resources to provide safe cover.”
Business
Iran oil returns: India set to receive first cargo in 5 years, tanker heads to Gujarat – The Times of India
India is set to receive its first shipment of Iranian crude oil since 2019, with a tanker carrying 600,000 barrels of oil en route to Gujarat following a temporary sanctions waiver by the US, according to PTI.Ship-tracking data indicates that the vessel Ping Shun is headed towards Vadinar port, marking a potential revival of Indo-Iran oil trade after nearly five years.“The Indo-Iranian oil trade has flickered back to life. Following the US administration’s decision to grant a 30-day window for Iranian oil “on the water” due to regional conflict, the vessel Ping Shun is now en route to Vadinar (in Gujarat) with 600,000 barrels of crude. This is the first such delivery since May 2019 and comes at a critical time for Indian refiners facing tightening inventories,” said Sumit Ritolia, Lead Research Analyst, Refining and Modelling at Kpler.The development follows Washington’s decision earlier this month to allow a 30-day window for the purchase of Iranian oil already at sea, aimed at easing global oil prices amid the ongoing US-Israel conflict with Iran. The window is set to expire on April 19.While the buyer of the cargo remains unidentified, Vadinar houses a 20 million tonnes per annum refinery operated by Rosneft-backed Nayara Energy and also serves as a landing point for crude supplies to inland refineries such as BPCL’s Bina unit.India’s oil ministry has so far maintained that any decision to resume imports from Iran will depend on techno-commercial viability.Before sanctions were tightened in 2018, India was among the largest buyers of Iranian crude, importing both Iran Light and Iran Heavy grades due to refinery compatibility and favourable pricing terms.Imports ceased in May 2019 after US sanctions were reimposed, with India shifting to alternative suppliers including the Middle East and the US. At its peak, Iranian crude accounted for 11.5 per cent of India’s total imports.India had imported about 518,000 barrels per day (bpd) of Iranian oil in 2018, which declined to 268,000 bpd between January and May 2019 during a sanctions waiver period before dropping to zero thereafter.“The Aframax Ping Shun (IMO 9231901) loaded with Iranian crude oil from Kharg Island in early March has emerged as the first vessel observed signalling a destination of Vadinar, India since May 2019, following sanction reimposition on Iranian oil by the first Trump administration,” Ritolia said.The tanker is estimated to have loaded around 600,000 barrels from Kharg Island around March 4 and is expected to reach Vadinar on April 4.An estimated 95 million barrels of Iranian oil are currently stored on vessels at sea, of which around 51 million barrels could be supplied to India, while the rest may be directed to China and Southeast Asian markets.However, payment mechanisms remain uncertain as Iran continues to be excluded from the SWIFT global banking system, complicating international transactions.Earlier, payments were routed in euros through Turkish banks, but that channel is no longer available following renewed sanctions restrictions.Iran was first disconnected from SWIFT in 2012 due to EU sanctions over its nuclear programme, with further disruptions in 2018 after the US reimposed sanctions, limiting its ability to receive payments and access foreign currency reserves.
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