Michael Fabricant says new laws may be needed to curb soaring energy prices

The Lichfield MP said the cost of living crisis was "the biggest domestic issue" facing people at home and abroad.

He said more needs to be done to stop people suffering from the "inflation crunch" and said there may need to be legislation introduced in Parliament "to ensure that utility bills and prices at the pump reflect world market prices".

The Conservative MP said: "Help needs to be targeted such as a reduction in fuel taxes to bring down prices at the pump and state subsidies to utility companies to reduce gas and electric bills rather than receiving a rebate some weeks later as is the case with council tax charges.

"And the Government needs to ensure that as world oil and gas prices fluctuate, fuel and utility companies reduce prices swiftly rather than delaying to increase profits."

Mr Fabricant said he was "not convinced" that a one-off windfall tax was the long-term answer. "There may need to be legislation introduced in Parliament to ensure that utility bills and prices at the pump reflect world market prices," he added.

"I am conscious that, like most other western countries, UK debt is building up and interest repayments must not be allowed to squeeze out expenditure on the NHS, defence, education and other important government services.

"But I and other colleagues are speaking to Treasury ministers and I am in no doubt that Rishi Sunak is well aware of the strength of feeling.

"The cost of living crisis is the biggest domestic issue both here and abroad and more will need to be done to avert some of its worse effects."

Earlier this year Labour proposed a 10 per cent spike on corporation tax for North Sea oil and gas producers, claiming the mover would raise £1.2 billion, which could be used to help households deal with rising bills.

Following this month's energy price rises millions of households are paying around £700 a year more for electricity and gas.