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24.10.13

Cameron’s green levy roll-back a ‘panic U-turn’ say Lib Dems

Prime Minister David Cameron has called for a green energy tax review, warning that they are pushing up household bills. “Rolling back” environmental regulations and charges could help to cut the £112 ‘green taxes’ on the average annual bill.

A new competition test for the so-called ‘big 6’ energy firms will also be introduced, in an effort to curb bills.

The Liberal Democrats accused him of a ‘panic U-turn’ in front of MPs.

Yesterday at PMQs, Cameron told MPs: “We need to help people pay their bills and we need to help to get bills down. We need to roll back some of the green regulations and charges that are putting up bills.”

Miliband accused the prime minister of changing his policy “every day of the week”.

It follows Labour’s pledge to freeze energy prices for 20 months. In a speech later, Miliband is set to say that Cameron has “lost control” of his government.

And a senior Lib Dem source said: “There is only one way this Government decides policy – with both Coalition parties agreeing. We are not going to allow a panic U-turn in the middle of Prime Minister's Questions to change government policy.

“We are happy to stress test the need for every penny that goes on to energy bills. But we will not damage the environment; reduce help for people in fuel poverty or damage our renewables industry.”

The DECC table below shows the ‘green taxes’ element of the typical energy bill.

green - BOTTOM IMAGE

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