DUP letter to Chancellor: UK-wide cost-of-living action is needed

Rt Hon Rishi Sunak MP

1 Horse Guards Road

London

SW1A 2HQ

Dear Chancellor,

I am writing to you as the latest tranche of energy price rises take effect in Northern Ireland, placing further pressures on the cost of living.

You will recall that we wrote to you on March 7 and separately on March 22 urging timely and practical action to support struggling households right across the United Kingdom. Although the measures announced since the Spring Statement are constructive, I do not believe they harness the full range of tools at the government’s disposal to provide relief at this unprecedented time. There is a need for further assistance and that need is intensifying.

Energy costs are soaring both for business and domestic users and fuel costs are hitting home for working families who are now routinely paying £200 per week to fuel their vehicles. Almost 50% of this cost is drawn from duties, VAT and green taxes. It is time to ease the tax burden on working families.

Any reductions however must be applicable to all regions of the United Kingdom and its benefits must be available directly to consumers in Northern Ireland. It is unjustifiable that the powers granted to the European Union in respect of VAT in Northern Ireland under the protocol could act as a stumbling block to delivering this parity.

The introduction of legislation to deal with the NI Protocol is welcome. I would urge you to face down any EU blockage to extending tax cuts to Northern Ireland. The fact that energy schemes in Great Britain can avail of zero VAT but Northern Ireland cannot is a real life example of the Protocol’s madness.

It is critical that action is taken now to address the crippling costs facing our households and businesses.

Such action should be taken in a fashion that provides equal benefits to all of UK citizens in line with the constitutional traditions of the United Kingdom.

For our part, we continue to discuss with the other Parties in Northern Ireland the options available to deliver assistance to households here. In particular, we want to use the levers available to us to reduce rates bills and the cost of childcare for working families.

I trust you will give these issues due consideration.

Rt Hon Sir Jeffrey Donaldson MP, Leader, Democratic Unionist Party, 91 Dundela Avenue, Belfast BT4