Five Times Brexit Promises Failed to Deliver Cheaper UK Energy Bills
The UK is bracing for a significant surge in household energy costs, with experts predicting an increase of at least £600 by spring 2022. This alarming rise comes after a year of skyrocketing gas prices that forced numerous energy suppliers out of business. The current energy price cap, set at £1,277 by Ofgem, is expected to climb even higher, leaving many households struggling to cope. Amid this crisis, the UK’s decision to remain outside the EU Internal Energy Market has drawn criticism, as it limits the country’s ability to influence energy prices through participation in European energy auctions. This isolation has left the UK vulnerable to market fluctuations, with little control over the cost of fuel.
In contrast, the European Commission has taken proactive steps to address rising energy costs across its member states. In October 2021, the Commission proposed measures to mitigate the financial burden on households, including tax cuts, state aid, and options like deferred or partial bill payments. Countries such as Italy and Portugal have already implemented these recommendations, slashing energy taxes and reducing sales taxes on household energy. However, the UK government has yet to adopt similar strategies, leaving its citizens to bear the brunt of the crisis. This inaction has reignited scrutiny over the promises made by Brexiteers, who assured voters that leaving the EU would lead to cheaper energy bills.
One of the most prominent figures to make such promises was Boris Johnson, who, alongside Michael Gove, claimed in 2016 that Brexit would result in lower gas bills. In a joint article for The Sun, the duo argued that leaving the EU would allow the UK to cut VAT on household energy payments, saving families money. They also suggested that Brexit would boost wages, strengthen the NHS, and reduce taxes. However, five years later, the 5% VAT rate on energy bills remains unchanged, and the Treasury has stated there are “no plans” to reduce it. Johnson has since attributed the current energy price hikes to the pandemic, likening the situation to “everyone going back to put the kettle on at the end of a TV programme,” which has strained global supply systems.
Nigel Farage, the former leader of UKIP, also championed Brexit as a solution to high energy costs. In a 2013 article for The Independent, Farage criticized green energy initiatives, claiming they caused “massive economic damage.” He argued that leaving the EU would enable the UK to abandon green taxes and subsidies, focusing instead on traditional energy sources like coal, gas, and nuclear power. Farage’s vision, however, has not materialized, as the UK continues to grapple with rising energy prices and the challenges of transitioning to sustainable energy.
Similarly, Michael Gove and Douglas Carswell made bold predictions about the economic benefits of Brexit, including lower energy prices. Gove claimed that leaving the EU would allow the UK to eliminate VAT on fuel, saving households £60 annually. Yet, British drivers now pay significantly more for fuel than their European counterparts. Carswell, in a 2016 article for Reaction, painted an optimistic picture of a post-Brexit Britain where energy prices would fall to global levels, revitalizing industries like steel and cement. However, as the UK faces an energy crisis, these promises ring hollow, leaving many to question the validity of the claims made by Brexit proponents.
Jacob Rees-Mogg, another prominent Brexiteer, argued that Brexit would lead to lower prices for energy, food, and clothing, boosting the disposable income of the UK’s poorest citizens. He envisioned a future where the UK could import cheaper goods from outside the EU, reducing costs for consumers. While these claims were meant to inspire confidence in Brexit’s economic potential, the reality has been far less rosy. As energy bills continue to rise, the gap between the promises made and the outcomes achieved grows ever wider, leaving many to wonder whether the benefits of Brexit will ever materialize as promised.