Boris Johnson news – live: Labor demands value-added tax cut on energy bills as Truss threatens to trigger Article 16

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Rachel Reeves makes plans for a windfall tax to help with energy bills

Labor shadow advisor Rachel Reeves has proposed a package of measures to tackle the cost-of-living crisis and rising energy bills.

It is calling for the government to cut value-added tax on energy bills to save £100 per year for families and is proposing an unexpected tax on gas companies in the North Sea.

The tax on North Sea oil and gas is expected to save £200 a year for most families.

Former Conservative Energy Secretary Chris Skidmore also backed the tax, saying: “A windfall tax – whether you call it that, or you want to call it a carbon tax, I prefer talking about – is how we achieve a carbon tax for the future, is absolutely the right way to go. “.

The debate over how to tackle rising energy prices comes as Foreign Secretary Liz Truss has warned the European Union that she will trigger Article 16 if talks fail.

As Liz Truss fired a shot across the channel, said: “My priority is to protect peace and stability in Northern Ireland. I want a negotiated solution but if we have to use legal provisions including Article 16, I’m willing to do it.”

Latest update 1641726832 showed – The faster the EU and UK move to bypass Brexit, the better they are equipped to face the Russian threat – EU Ambassador to the UK

The EU’s ambassador to the UK, Joao Val de Almeida, said that once the EU and UK moved past issues related to Brexit “we will be better equipped” to tackle “the very serious issues”.

Referring to the build-up of Russian forces on the Ukrainian border and Russia’s military support to Kazakhstan, he said, “This is one area where the European Union and the United Kingdom can do a lot together.”

“My feeling when looking at the broader picture is that the sooner we move on from the issues that are still overtly linked to Brexit, particularly the status of Northern Ireland, the sooner we can move on from that, the better equipped the EU and the UK, to act. Together we tackle very serious issues.”

The Press Association contributed to this report.

Holly Bancroft Jan 9 2022 11:13

1641725551 What is Article 16 of the Northern Ireland Protocol?

Article 16 is part of the Northern Ireland Protocol, the Brexit agreement between the United Kingdom and the European Union in October 2019.

The protocol leaves Northern Ireland in the EU’s single market for goods which means items can flow freely between the Republic of Ireland and Northern Ireland.

But this sets Northern Ireland apart from the rest of the United Kingdom and creates an effective “maritime border” between the two.

Article 16 is effectively an escape clause that would allow unilateral “preventive” measures by the EU or the UK if they conclude that the deal creates serious practical problems or diverts trade.

These actions are permitted if the transaction causes “economic, social or environmental hardship”.

Article 16 is not designed to completely abandon the deal, and after the safeguard measures are implemented, negotiations on the deal will continue.

The measures will be jointly reviewed every three months so that updated actions can be taken.

However, disagreements can escalate if a solution is not found regarding the “difficulties”.

Holly Bancroft Jan 9 2022 10:52

1641724873 EU Ambassador to the UK: “It is not helpful to continue to be nervous about the use of Article 16”

The EU ambassador to the UK said it was “not very helpful that we continue to raise the Article 16 issue” and expressed our desire to “reconnect with the British government”.

When asked about the comments Liz Truss made about activating Article 16, Joao Val de Almeida said: “We’ve heard this before from the government, so we’re not surprised. We’re not very impressed.”

“We still think it’s not very helpful to keep raising the issue of Article 16. I think what we should focus on – at least that’s where we focus – is trying to find solutions to the difficulties in implementing the Protocol.”

Holly Bancroft Jan 9 2022 10:41

1641721749ICYMI: Change course or risk losing the next election, Lord Frost tells Boris

The former Brexit minister, Lord Frost, has warned that Boris Johnson must change course to avoid losing the next election.

The prime minister urged revitalizing the country through “free markets, free debate and low taxes” in an interview with The Mail on Sunday.

Read the full story here:

Holly Bancroft Jan 9 2022 09:49

Rachel Reeves: ‘We are uniquely vulnerable’ to rising energy prices in Britain

Labor shadow adviser Rachel Reeves has called for a windfall tax on North Sea oil companies to help ease the cost of living crisis.

Reeves said the tax would raise an additional £1.2 billion.

Hear her comments here:

Holly Bancroft Jan 9 2022 09:39

Shadow Labor Adviser Rachel Reeves Calls for VAT Reduction on Energy Bills

Labor shadow adviser Rachel Reeves said if now was not the time to cut value-added tax on energy bills, then “frankly I don’t know when,” and called for the government to remove VAT from gas and electricity prices.

Ms Reeves told Trevor Phillips on Sky on Sunday: “The prime minister was the biggest supporter of cutting VAT on gas and electricity bills during the European referendum. But now when cutting these laws will make more of a difference than ever, the prime minister says no.”

“Well, I say bills cannot be paid on broken promises. The government should honor this commitment made by the Prime Minister to reduce the value-added tax from gas and electricity prices.

“If this isn’t the time to do it, I honestly don’t know when.”

She said Labor would “cut the value-added tax on gas and electricity bills from 5% to zero for one year”, which she said, “given the higher prices we expect to see”, would save households £100 a year.

Ms Reeves told the BBC’s Sunday Morning program that it was “something that can be done now”.

“We are suggesting that oil and gas companies in the North Sea, which will generate record profits this year, pay more taxes,” she added.

She also called for more home isolation and said the government’s “hesitation and delay” meant we had not built homes to a net zero target standard.

Ms. Reeves said that we were too dependent on the Russians for our gas and that we needed to “wean” ourselves off the country’s dependence on these imports.

The Press Association contributed to this report.

Holly Bancroft Jan 9 2022 09:27

1641719410 Wales First Minister Johnson accuses Johnson of failing to protect England from Covid

Wales First Minister Mark Druckford has criticized Covid measures in England, saying the Johnson government has not done “what science told them to do”.

Drakeford, speaking of Trevor Phillips on Sunday, said the mixed messages about Covid restrictions had not been helpful. “When we have different messages across the border, it makes it more difficult for us,” he said.

He defended the measures despite the high rates of Covid in Wales, saying: “There are much fewer parts of Wales than other parts of Wales, and much less than other parts of England – so comparing the whole of Wales to all of England does not get to the heart of the problem.”

“He asks me over and over again, why isn’t Wales doing the same things and England.. It’s not Wales that is aloof, Wales is following the same path as Scotland and Northern Ireland…and by other governments around the world.”

Referring to Johnson’s government, Mr Drakeford said: “I think they haven’t done what science would have asked them to do.

“I totally reject the way English ministers are trying to manipulate the needs of the economy with the needs of public health.. the actions we are taking to protect public health are exactly the actions we need to take to protect the economy.”

Holly Bancroft Jan 9 2022 09:10

1641717963ICYMI: Post-Brexit farming plan ‘will increase UK dependence on food imports’

A parliamentary report has warned that many small farmers and renters may be forced out of their businesses due to the government’s post-Brexit agricultural plan.

The report warned that by encouraging farmers to free up land for environmental purposes, England could end up importing more food.

Read my colleague Andrew Woodcock’s story here:

Holly Bancroft Jan 9 2022 08:46

1641717584 Workers demand tax on North Sea profits to curb rising energy bills

Workers have called for an unexpected tax on North Sea oil and gas to help reduce the impact of rising household energy bills.

Shadow adviser Rachel Reeves said the proposed measures would save most households £200 and protect the poorest from expectations of a financial hit from higher energy prices.

Read the full story by my colleague Andrew Woodcock.

Holly Bancroft Jan 9 2022 08:39

Lord Frost: ‘We need free markets, free debate and low taxes’

Former Brexit Secretary Lord Frost has called on Boris Johnson’s government to move to “free markets, free debate and low taxes” in order to win the next election.

“The prime minister has the right, when he wants something to happen, to the levers he pulls to actually produce something. And he has the right to get the best possible advice around him.”

“There will likely be a few different voices around him to make sure he’s getting the best advice possible.”

“We need to get the country to work economically again and that means free markets, free debate and low taxes.”

“People need to look at this country and think, yeah, something is changing here. You have to set the direction of travel.”

“If we’re going to get out of that trough and win an election in two years, we have to develop that.”

Holly Bancroft Jan 9 2022 08:36

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