Shadow Chancellor will today [Wednesday] vow to
make working people better off by tackling the root causes of the
cost-of-living crisis, as she announces plans to help families
save up to £300 off energy bills.
Speaking ahead of the publication of May's inflation data, the
Shadow Chancellor will accuse the Conservatives of being
“staggeringly out of touch with the struggles facing ordinary
families”.
On a visit to the South West, Reeves will pledge to put family
finances first by helping families save up to £300 off energy
bills and protecting Britain from future energy shocks.
Reeves will confirm that a future Labour government would
establish Great British Energy, a publicly owned energy company,
to take back control of Britian's energy supply producing cheaper
power and ensure that profits go back into people's communities.
Great British Energy will have an initial capitalisation of £8.3
billion over a Parliament, paid for by a proper windfall tax on
oil and gas giants. The £3.3 billion
GB Energy local power plan alone will generate 8GW of
clean power within five years.
With Labour's plan to make Britain a
clean energy superpower by 2030 families will save up
to £300 per year off their energy bills,
boosting our energy independence, and creating 650,000
good jobs.
The Office for Budget Responsibility has warned that reliance on
gas leaves Britain at risk of another gas price shock, which
could see energy bills rise by £1,300.
, Labour's Shadow Chancellor
of the Exchequer, said:
“After 14 years of Conservative chaos, working people are worse
off. Prices are still sky-high in the shops, mortgage bills
are higher and the price of energy has soared.
“This election has exposed a Conservative Party that is
staggeringly out of touch with the struggles facing ordinary
families. The Conservatives have no plan to tackle the cost of
living and instead are offering a desperate wish list of unfunded
promises that will mean £4,800 more on people's mortgages.
“I will always put family finances first. As Chancellor, I will
tackle the root causes of the cost of living crisis so we can
make working people and their families better off. That includes
creating a publicly owned clean energy company to power Britain's
future energy security, take control of our energy supply and
bring down bills.
“It's time for change. A vote for the Conservatives is a vote for
more chaos and higher mortgages. A vote for Labour is a vote for
change and to make Britain better off.”
Ends
Notes:
As a first step Labour will launch Great
British Energy to take back control of
our energy supply producing cheaper power for our
country, and ensuring that profits go back into our
communities.
Headquartered in Scotland, Great British Energy will
invest in cheap, clean, homegrown energy, to cut bills
for families, and ensure that jobs and supply chains are built
here in the UK, rebuilding the strength of British
industry. It will have an initial capitalisation of £8.3
billion over a Parliament, paid for by a proper windfall tax on
oil and gas giants.
The £3.3 billion GB energy local power plan alone will
generate 8GW of clean power within five years.
Great British Energy is part of our mission to make
Britain a clean energy superpower by 2030 - helping
families save up to £300 per year off
their energy bills, boosting
our energy independence, and creating 650,000 good
jobs.
The OBR modelled an indicative future gas price shock in their
Fiscal Sustainability Report in July 2023. In their model, gas
prices rise to around £2.35 per therm, marginally below the
average in 2022-23. Based on the average energy price cap in
2022-23, this would increase bills by over £1.3k a year for
British families (link).
The OBR notes the potential channels for a future gas price shock
on the UK; “on the demand side, the expansion of renewable
sources of energy could lower prices, but factors like the
transition of more coal-dependent economies, like China and
India, towards natural gas could raise them. And on the supply
side, significant increases in LNG capacity could put downward
pressure on prices, but – as witnessed during the oil shocks of
the 1970s and 1980s – geopolitical tensions could result in more
hostile pricing strategies from major gas suppliers, forcing
prices higher.”
