A bold proposal to slash household energy bills by £300 this winter has been put forward, funded by a new windfall tax on commercial banks. The plan, championed by the SNP, comes just days before the Chancellor's crucial Budget announcement.
Thatcher-Era Inspiration for Modern Cost-of-Living Crisis
Stephen Flynn, the SNP Westminster leader, has publicly pressured Chancellor Rachel Reeves to back the scheme designed by the IPPR think tank. The proposed levy mirrors a similar tax implemented by Margaret Thatcher in the 1980s and is projected to raise approximately £8 billion annually.
Mr Flynn drew direct comparisons to the former Tory government's Energy Bills Support Scheme, which provided £400 payments. However, the new SNP scheme would cost an estimated £8.15 billion, as it would exclude top-rate taxpayers in Scotland and additional-rate taxpayers elsewhere in the UK from receiving the £300 support.
A Direct Challenge to Labour's Manifesto Pledge
The SNP leader framed the proposal as a way for the Labour Party to honour its own election promises. He stated, "This SNP Budget proposal would immediately right the wrong of the Labour Party's broken promises on energy bills and put money directly into people's pockets this winter."
He directly challenged the Chancellor, saying, "Cutting the public's energy bills by £300 this winter is one promise the Labour Party can, should and must keep." Mr Flynn expressed frustration that despite public statements about everyone "doing their bit," Reeves appears intent on "letting the banks off the hook" in her upcoming Budget.
Westminster Chaos vs. Scottish Energy Independence
Mr Flynn argued that the "chaos and the ongoing civil war in the Labour Party" has led to the everyday priorities of people being "lost and ignored." He added that instead of internal fighting, the government should be focused on the battle to bring down energy costs.
He highlighted the discrepancy between Labour's election pledge and the current reality, noting, "Labour promised people at the general election that they would cut energy bills by £300 – everyone knows that they have instead gone up by nearly £200."
The SNP leader concluded by reiterating his party's long-held position, stating that only with the "fresh start of independence" can Scotland permanently lower bills by harnessing its own vast energy resources. The UK Government has been contacted for comment by the Press Association.
