UK MPs back measures to weaken link between gas and electricity prices
Legislation aimed at weakening the link between global gas market prices and the cost of UK electricity has been passed by MPs.
The Taxation (Energy & Vehicles) bill will increase the rate of the electricity generator levy, EGL, to 55% from 45%.
It aims to offer support for consumers and businesses, after energy costs rose during the conflict in the Middle East.
In the Commons, Treasury minister Rachel Blake said the bill forms part of the government's aim to "put our economic security and national security first".
She said the rate rise "will ensure that a larger proportion of any exceptional revenues from high gas prices are passed back to Government, which provides a vital revenue stream, so that money is available for government to support businesses and families with the impacts of the conflict in the Middle East".
The bill will also increase the rate for approved mileage allowance payments, Amaps, for cars and vans to 55p from 45p for the first 10,000 miles.
The approved rate defines how much employees can be reimbursed tax-free for using their own cars for work, including insurance and servicing.
Blake also pointed to "a 12-month holiday from vehicle excise duty for the majority of heavy goods vehicles" included in the draft legislation.
It sets out changes to certain rates of vehicle excise duty for licences taken out between July 1 2026 and June 30 2027 for vehicles used in the course of a trade.
The bill was fast-tracked through the House of Commons, with all parliamentary stages complete within two hours.
MPs passed it at third reading unopposed. It will now be sent to the House of Lords for further scrutiny.
By Rhiannon James, Press Association Parliamentary Editor
Press Association: Finance
source: PA
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