54% think the government should remove VAT from energy bills

Britons are increasingly pessimistic about the state of the economy and a record number are finding it harder to meet their monthly budget compared to a year ago, reveals our latest barometer.

Key findings from Kantar Public’s research, which took place between 19 and 23 May, include:

• Two in three Britons (68%) think the British economy is doing worse than it was a year ago (+6 vs April 2022[1]), this is the highest figure recorded since January 2021. One in four (23%) think it is doing much the same (-3) but only 9% think it is doing better (-4).
• Almost two-thirds of Britons (64%) are finding it harder to meet their monthly household budget than a year ago (+3). This is the highest level recorded since August 2011, when this question was first asked.
• 82% (+2) think the government has handled the cost-of-living crisis fairly or very poorly.
• Britons think the government should take the following actions to help deal with increases to the cost of living:
  • 54% think the government should remove VAT from energy bills
  • 44% think the government should introduce a windfall tax on oil and gas companies’ profits to fund support for household energy bills
  • 41% think fuel duty should be cut
  • 35% think the government should reduce income tax
• The public are completely divided on what the government should do about the Northern Ireland protocol:
  • 32% think the government should change the arrangement to make the rules exactly the same for Northern Ireland and the rest of the UK, even if this may mean the return of a hard border
  • 30% think the government should stick with the current arrangement and keep in place the trade agreement already negotiated with the EU
  • 38% don’t know what the government should do

More detailed analysis on themes

1. Household-level economic situation

Britons are increasingly pessimistic about the economy and their household finances. 

• 68% think the British economy is doing worse than it was a year ago (+6 vs April 2022). One in four (23%) think it is doing much the same (-3) but only 9% think it is doing better (-4).
• 51% think that the British economy will be doing worse than it is now in a years’ time (+7 vs April 2022), 13% think it will be doing better (-1) while 35% think it will be doing much the same as it is now (-7).
• Almost two-thirds (64%) are finding it harder to meet their monthly household budget than a year ago (+3 vs April 2022). This is the highest level recorded since August 2011, when this question was first asked.
• Among those who report that it is harder to meet their household budget, over half (58%) cite the rising cost of energy bills as the main reason (+4 vs April 2022) while 15% attribute it to the rising cost of food (+1).
• To help deal with increases to the cost of living, Britons think the government should reduce VAT on energy bills, reduce income tax and introduce a windfall tax on oil and gas companies.
  • 54% think the government should remove VAT from energy bills
  • 44% think the government should introduce a windfall tax on oil and gas companies’ profits to fund support for household energy bills
  • 41% think fuel duty should be cut
  • 35% think the government should reduce income tax
  • Only 1% of Britons think the government should take no action to deal with the cost of living
• A quarter of Britons (24%) are behind with some or all of their bills (+4 vs April 2022) while 69% are up to date with all of their bills (-4).
• A quarter (24%) of those in work believe their job is less secure than it was a year ago (+1 vs April 2022). Only 16% believe their job is more secure than it was a year ago (nc), although 52% believe their job security is much the same as before (-2).

2. Policy Priorities

When asked about the three most important priorities for the UK government if it is to improve public life in the UK, Britons cite the following:

• Reducing the cost of living (54%, -2 vs April 2022).
• Investing more in NHS capacity (35%, +3).
• Growing the UK’s economy (24%, +1).
• Reducing income inequality (23%, -2).

3. Party Leaders Rating

When it comes to party leaders, a plurality believes neither Boris Johnson nor Keir Starmer is best placed to tackle the UK’s biggest policy challenges. A large proportion simply do not know who would be better.

Britons tend to think Keir Starmer would do a better job than Boris Johnson at: reducing the cost of living, improving the economy, reducing serious crime, managing the NHS, tackling climate change, telling the truth, and making decisions in the best interest of the general public.

Whereas Britons are of the view that Boris Johnson would be better placed to deal with: managing the COVID-19 pandemic, managing Brexit, leading Britain if military action were needed, and standing up to Russia.

However, the difference between the two is mostly in single figures.

4. Northern Ireland Protocol 

• 38% of Britons do not know what the government should do about the Northern Ireland protocol.
• 32% of Britons think the government should change the customs arrangements to make the rules exactly the same for Northern Ireland and the rest of the UK, even if this may mean the return of a hard border.
• 30% of Britons think the government should stick with the current arrangement and keep in place the trade agreement already negotiated with the EU.

5. Attitudes Towards COVID-19

Britons are split on the government’s handling of the pandemic:

• Half of Britons (49%, +1 from April 2022) think the government has handled the COVID-19 pandemic very/fairly well. 45% (-2) think the government has handled the pandemic very/fairly poorly.

6. Voting Intentions

• Lab 38% (+1 vs April 2022)
• Con 32% (-2)
• L Dem 13% (+2)
• Green 8% (+1)
• SNP 3% (-2)
• Reform UK 3% (-1)
• UKIP 1% (-1)
• Plaid Cymru <1% (-1)
• Other 1% (nc)

Methodological information

A total of 1,087 interviews were conducted online among adults living in Great Britain between the 19th and 23rd May 2022. All interviews were conducted online using the Kantar Research Express. The Kantar online access panel was the main sample source.

The data was weighted to match population totals for age, gender, 2019 General Election voting patterns, 2016 EU referendum voting patterns, education, region, and likelihood to vote in the next General Election. Any use of this research must cite Kantar Public as the source.

This Britain Barometer was issued under our former global brand name: Kantar Public.