16 August 2022

Rishi Sunak rules out Labour proposals to freeze energy price cap

16 August 2022

Rishi Sunak has ruled out Labour’s plan to freeze the energy price cap if he is made prime minister.

His opponent Liz Truss has refused to say what support she would offer people to limit the impact of energy bill rises, other than pausing the green energy levy on bills.

The two candidates vying to be the next prime minister faced scrutiny of their plans to help households with rising bills after Sir Keir Starmer attempted to seize the initiative.

On Monday the Labour leader unveiled a “fully costed” £29 billion plan to freeze the cap at the current level of £1,971 for six months from October, saving the average household £1,000.

At a Tory leadership hustings in Perth on Tuesday, Mr Sunak ruled out adopting this plan, saying: “I don’t think that is the right approach.”

Asked what he would do to help businesses with energy costs, he added that things he had done as chancellor, including a cut in business rates, were already “making a difference”.

Ms Sunak also emphasised the importance of prioritising rising energy costs over other political issues when asked whether he would allow a second Scottish independence referendum.

“We live in a union which is, of course, there by consent and by democracy and I accept that, but I just don’t think that anybody thinks that now or any time in the near future is remotely the time to focus on this,” he said.

Ms Truss said she did not want to pre-empt a budget given by a chancellor she would appoint.

“What I’m not going to do here is write the next chancellor’s budget when we are still in the middle of this leadership election,” she said.

Ms Truss added that she would look to boost the economy and shore up energy supplies.

On Monday, Sir Keir accused both Tory leadership candidates of lacking ideas as he unveiled Labour’s solution to the crisis.

The plan would be paid for in part by an extension of the windfall levy on the profits of oil and gas companies.

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