U.K. Rekindles Option to Cut VAT From Soaring Energy Bills

Prime Minister Boris Johnson’s government is resurrecting a proposal to eliminate the value-added tax from energy bills as ministers consider ways to alleviate the growing cost-of-living crisis in Britain.

Household charges are set to jump by almost 50% in April as soaring wholesale prices for natural gas get factored into a regulatory cap on bills that’s adjusted twice a year. With taxes also scheduled to increase that month and wider inflation at its highest in three decades, ministers are grappling with how to soften the blow to consumers. Eliminating the VAT could save a typical household almost 100 ...