Rishi Sunak accused of taking money out of pensions to fund cost of living rescue plan

Rishi Sunak 'taking money out of our pensions' says economist

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Rishi Sunak unveiled a £15billion package to help Britons struggling with the cost of living crisis throughout the country. The mammoth economic rescue plan is part-funded by a 25 percent windfall tax on gas and oil company profits. However, Catherine McBride, from the Centre for Brexit Policy, warned that these measures were simply “taking money out of our pensions”.

The economist told GB News: “I don’t think we can afford to have an ad hoc taxation system.

“Whatever he wants to call it, by doing a windfall tax on the oil and gas companies, that is not a good way forward.

“It is not free money. For anyone who has money in a pension fund, that pension fund will have money in both BP and Shell.

“So basically he is taking money out of our pensions and giving it to us as a present.”

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She added: “We have 5 percent VAT on household fuel bills and 20 percent VAT on petrol and diesel.

“So the Government is taking the money from us in VAT and then giving it back to us.

“It’s absolutely the wrong thing to be doing.”

Ms McBride also warned the measures could have a negative impact on Brexit free trade deals and investment.

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She said: “Other companies will think twice about investing in the UK, if the UK can just make up its tax policy as it goes along.”

Labour, who had long called for a windfall tax, were disappointed that Mr Sunak did not cut VAT on fuel.

Today, Boris Johnson defended the rescue package in the face of Conservative anger the measures went too far and Labour criticism the measures were not enough. 


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Mr Johnson said the help was “much more generous” than what Labour had proposed, giving £1,200 to eight million households.

Some Conservative MPs have criticised the windfall tax, given that the national debt currently stands at around £2.3trillion.

One MP, Richard Drax, accused the chancellor of “throwing red meat to socialists”, while another, Craig Mackinlay, described the policy as “tripe”

Earlier this week, UK energy regulator Ofgem said the typical household energy bill was set to rise by £800 in October, bringing it to £2,800 a year.

Bills rose by £700 on average in April.

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