Anas Sarwar demands 'package to bring down energy bills' in UK Budget

Anas Sarwar has demanded that the UK Government include a “package to bring down energy bills” in the Budget this week.

The Scottish Labour leader said Chancellor Rachel Reeves must bring forward measures which reduce energy costs for consumers and businesses on Wednesday.

He added that both firms and households are “struggling” to meet their gas and electricity costs.

Scottish Labour leader Anas Sarwar | PA

Mr Sarwar told the BBC’s Sunday Show: “I'm really clear about what this budget needs to do. It has to be a Labour budget with Labour values running right through it.

“But what does that mean in practice? This has to be a budget that reduces poverty, and in particular, child poverty.

“That's why we have to see the end of the two-child benefit cap, which would lift tens of thousands of children out of poverty.

“It has to be a budget that confronts the cost of living crisis and improves living standards.

“That's why we need a package to bring down energy bills.

“And it also has to be a budget that, if it does contain tough decisions, it doesn't go to the Tory playbook of austerity.

“There has to be a rejection of austerity and demonstrate that we have to invest in our public services, invest in our people and invest in our economy.”

When asked what he would like to see on the cost of living, Mr Sarwar said: “Energy bills comes up time and time again. Now, I welcome the fact that economic stability has meant that the average mortgage is £1,500 lower.

“I welcome the fact that we have wages on average £1,800 pounds higher since Labour came to power. I believe more progress will be made on that in this budget and in the coming months, but people still feel like the cost of living crisis is biting.

“That's why we've got to bring down the cost of energy, not just for the consumer, but actually also, I think, for businesses who. are really struggling too. So let's have a significant energy package in this budget.”

Ms Reeves’ second Budget since becoming Chancellor will take place on Wednesday afternoon.

The UK Government had initially suggested it was going to raise taxes - but U-turned just days after Ms Reeves made a speech about it.

SNP Housing Secretary Mairi McAllan said later in the show that she would like to see a social tariff for energy bills, but was unable to say how it would be paid for.

She said: “The story with energy bills in particular has been them going up and up, and a seeming unwillingness or inability of UK governments to do anything about it, that just can't go on.

“People can't pay their bills, and they're accumulating debt. One particular thing that the Scottish Government has been working on with industry experts in Scotland in which Scotland, in which we're calling on UK to adopt is a social tariff, which is a targeted and at source discount, which we believe, and I published the methodology of it this week, could save households and model bills up to £700 a year, could take hundreds of thousands of people out of extreme fuel poverty.”

When asked who would pay for it, Ms McAllan said: “We have put the costs to the UK Government, and it would be paid for much like any other measure within the budget, and we think it should apply across the United Kingdom.”