Lib Dems unveil plan to cut energy bills and support local high streets

Monday, 17 November 2025 16:48

By David Murphy

Cllr Tom Shaw pictured at a bus stop in Norden.

Heywood and Middleton North’s Liberal Democrat spokesperson Tom Shaw has welcomed a national party proposal to slash energy bills and boost local spending as part of a £12 billion cost-of-living package.

The proposal, announced by party deputy leader Daisy Cooper MP on Wednesday 12 November, calls on the Chancellor to remove the 'renewables obligation' levy from electricity bills in the upcoming Budget.

If adopted, the move would cut the average annual household energy bill by over £90, bringing it to its second-lowest level since the 2022 energy crisis began.

Alongside energy reforms, the Liberal Democrats are urging the government to reduce VAT by 5% for hospitality and leisure businesses. The party estimates this combined plan could return around £270 to the average household while stimulating local economic activity.

Tom Shaw said the initiative could bring much-needed relief to families across the borough and help struggling small businesses.

“People here in Heywood, Middleton, Rochdale and across the country are facing sky-high energy bills and this government is unfortunately not doing enough to combat the problem,”

said Shaw.

“The Liberal Democrats’ plan to cut the average energy bill by more than £90 a year will put more cash back into people’s pockets. It will become more affordable for my constituents to heat their homes and help tackle the cost-of-living crisis head on.

“Lower energy bills would also leave people with a bit more spare cash to spend on the high street, which would re-energise our struggling small businesses and help drive economic growth. The Chancellor needs to listen.”

The renewables obligation is a legacy charge introduced in 2002 to support investment in green energy but has remained part of household bills even as renewable generation has become cheaper.

The Liberal Democrats argue the levy is now outdated and its removal would ease pressure on households without undermining the UK’s net-zero targets, which are now underpinned by other schemes.