Labour MP Dr Jeevun Sandher has said cutting energy bills will help bring down inflation and interest rates, arguing that the Government’s cost-of-living measures and investment in cleaner energy will ease pressure on household budgets.
The Loughborough MP, an economist by background, said rising energy costs had fed directly into higher prices across the economy and pushed up borrowing costs for families and businesses.
Sandher said the link between energy prices and wider economic pressures was clear, and that Labour’s approach under Prime Minister Andy Burnham was focused on reducing everyday costs while investing in cheaper, cleaner energy for the long term.
He said:
“Higher energy bills lead to higher inflation and higher interest rates.”
Sandher added:
“That’s why we are:
- directly cut energy bills (leading to fall in inflation of 0.4 points)
- Investing in cheaper, cleaner energy.”
The intervention comes as the Labour Government continues to roll out measures aimed at easing the cost of living, including action to reduce household energy bills and support families facing higher mortgage and borrowing costs.
Sandher argued that cutting energy bills would not only provide immediate relief for households but also help reduce inflationary pressures across the economy.
He said a direct reduction in energy costs could contribute to a fall in inflation of 0.4 percentage points, helping to ease the wider financial squeeze on working families.
As an economist, Sandher has repeatedly emphasised the connection between energy policy and broader economic stability, warning that high energy costs can quickly translate into higher prices on shop shelves and increased pressure on interest rates.
He also highlighted the Government’s investment in cheaper, cleaner energy as a central part of Labour’s economic strategy under Andy Burnham.
Ministers have argued that expanding renewable and low-carbon energy will help reduce Britain’s exposure to volatile global fossil fuel markets while delivering more predictable bills for households and businesses.
For constituents in Loughborough, Shepshed and the surrounding villages, Sandher said the combination of lower energy bills and long-term investment in clean power would provide both immediate savings and greater energy security.
With household budgets still under pressure, Labour MPs are likely to continue making the case that reducing energy costs is one of the most effective ways to bring down inflation and ease the burden of higher interest rates.
Sandher said the Government’s approach showed Labour was focused on practical measures that could deliver visible savings for ordinary families while strengthening the foundations of the UK economy.
