A vote to leave the European Union could add billions to the cost of fuel in the UK – according to an analysis of government import data. The data for 2015 suggests that a fall in the value of the pound – which is already taking place – could add up to £4bn to the cost of oil, gas, coal and electricity imports, driving up costs for consumers and businesses. Our analysis of the impact of Brexit on bills also found that a move to cut VAT on fuel would cost the treasury around £1.6bn and would be unlikely to compensate for higher fuel import costs on the economy as a whole. Were a government to go further and leave the single market – in order to control migration – trading and investment costs for the UK could also rise even more sharply – potentially creating problems keeping the lights on.
Energydesk 20th June 2016 read more »