Businesses, charities and other groups sign letter calling for levies to be paid by the government

More than 120 organisations including big businesses and charities have called for the removal of “hidden taxes” added to energy bills to help reduce costs for consumers and prevent businesses closing.

In a letter to the chancellor the signatories – including Energy UK, business trade body the CBI, End Fuel Poverty and Age UK – called for levies amounting to 10% of energy bills that fund policies to be paid for by the government. John Healey is to present his first budget on 28 October.

Soaring prices are plunging struggling families into debt. The government must support them in the short term as it invests in a clean energy future

Fuelled by the consequences of Donald Trump’s disastrous war on Iran, household energy debt in Britain is continuing to soar, rising to a record £6bn by the end of June. That figure is set to hit £7bn by the end of the year, as the government’s cap on gas and electricity prices goes up to a three-year high in October. The human cost among the less well off will be more people regularly choosing whether to skip meals, ignore other bills or stay cold this winter.

Such is life at the sharp end of the cost of living crisis, which Andy Burnham has made it his priority to address since arriving in Downing Street. The day after he became prime minister, Mr Burnham announced that VAT would be removed from electricity bills from the beginning of October. But the Middle East-related rise in the price cap, announced on Wednesday, more than wipes out the effect of his cut. In an era of geopolitical volatility, high energy costs have become the new normal.

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Boom in solar farms and home installations in first half of 2026 began shortly after start of US-Israel war against Iran

Great Britain has recorded more new solar power installations in the first half of this year than in any six-month period since 2011, as households turn to rooftop panels to help cut their energy bills.

An analysis of the government’s official figures shows that Great Britain added 142,536 solar installations in the first six months of the year, putting it on track to top last year’s record solar additions.

Cllr Lucy Shaw says councils could take up many policies to help, including more support for rooftop solar installations

Your editorial is right that the government could be doing more to help with the cost of living (The Guardian view on Britain’s coming energy shock: mini-measures won’t suffice, 22 May). That extends to local government, too. Renewable energy projects, from the industrial scale right down to rooftops, can be scuppered locally even if there is national support. The wealthiest borough in the entire country, Kensington and Chelsea, has the nation’s lowest rooftop solar installation rate, at just 0.6% of households according to the MCS installer database. This is despite touting groundbreaking policies to make it easier to build solar in conservation areas.

There are so many local policies that would help. Coordinating solar installations by street could lead to material cost savings, as would simpler permitting rules, and installations on council-owned rooftops. When 80% of cars in the borough are parked on the street, cost-effective public charging is essential to ensure that drivers can make the switch, like offering discounted charging when grid power is cheapest. Partnering with housing associations, charities, and energy suppliers to help people access energy efficiency services and government capital grants, or negotiate payment plans for their bills could go a long way to making people feel more secure.