Treasury dismisses idea of VAT cut on energy bills

Chief Secretary to the Treasury Danny Alexander has dismissed the idea of cutting VAT on energy bills.

Conservative MP Robert Halfon had called for the 5% VAT rate on energy to be reduced or scrapped.

Concerns about energy affordability have risen due to sharp rises in the cost of gas and electricity over recent years.

British Gas has announced it is increasing prices for domestic customers in November, with a dual-fuel bill going up by 9.2%.