Why a bonfire of the green taxes won't save the Tories

Polling shows that 75% of the public don't believe that green taxes are to blame for the surge in bills, and they're right.

The more optimistic among the Conservatives are hailing David Cameron's surprise pledge at PMQs to "roll back" green taxes as an intervention that could allow them to regain control of the energy debate from Ed Miliband. But even if Cameron can get his plan past the Lib Dems (which appears unlikely), it is doubtful that it will produce the political benefits that the Tories hope.

A recent poll by Survation for the Mail on Sunday found that 75% of the public do not believe that green taxes are to blame for higher bills, and they're largely right. The recent surge in energy prices owes much more to increased wholesale prices and profiteering by the big six than it does to environmental levies. In addition, of the £112 of "green taxes and green regulations" attacked by Cameron, the majority are energy efficiency measures designed to aid vulnerable households, including the Energy Company Obligation (£50), the Warm Home Discount for pensioners (£11) and smart meters and better billing (£3). Thus, of the average energy bill of £1,276, just £50 (4%) is accounted for by green taxes in the form of the Renewables Obligation (£30), the Carbon Price Floor (£3), the EU Emissions Trading Scheme (£8) and feed in tariffs (£7).

The Tories could transfer the cost of these measures (which are forecast to reduce bills by £166 by 2020) from consumer bills to general taxation, as the SNP has pledged to do, but Labour would simply reply that the government is giving with one hand and taking with one another. Owing to the big six, bills will continue to rise remorselessly. A bonfire of the green taxes lacks the symbolic power of a two-year freeze in prices and will do nothing to convince the public that the government is prepared to side with them against the energy companies. If the Tories want to trump Miliband, they'll need to go back to the drawing board. 

David Cameron returns to Downing Street earlier today after Prime Minister's Questions. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Theresa May is paying the price for mismanaging Boris Johnson

The Foreign Secretary's bruised ego may end up destroying Theresa May. 

And to think that Theresa May scheduled her big speech for this Friday to make sure that Conservative party conference wouldn’t be dominated by the matter of Brexit. Now, thanks to Boris Johnson, it won’t just be her conference, but Labour’s, which is overshadowed by Brexit in general and Tory in-fighting in particular. (One imagines that the Labour leadership will find a way to cope somehow.)

May is paying the price for mismanaging Johnson during her period of political hegemony after she became leader. After he was betrayed by Michael Gove and lacking any particular faction in the parliamentary party, she brought him back from the brink of political death by making him Foreign Secretary, but also used her strength and his weakness to shrink his empire.

The Foreign Office had its responsibility for negotiating Brexit hived off to the newly-created Department for Exiting the European Union (Dexeu) and for navigating post-Brexit trade deals to the Department of International Trade. Johnson was given control of one of the great offices of state, but with no responsibility at all for the greatest foreign policy challenge since the Second World War.

Adding to his discomfort, the new Foreign Secretary was regularly the subject of jokes from the Prime Minister and cabinet colleagues. May likened him to a dog that had to be put down. Philip Hammond quipped about him during his joke-fuelled 2017 Budget. All of which gave Johnson’s allies the impression that Johnson-hunting was a licensed sport as far as Downing Street was concerned. He was then shut out of the election campaign and has continued to be a marginalised figure even as the disappointing election result forced May to involve the wider cabinet in policymaking.

His sense of exclusion from the discussions around May’s Florence speech only added to his sense of isolation. May forgot that if you aren’t going to kill, don’t wound: now, thanks to her lost majority, she can’t afford to put any of the Brexiteers out in the cold, and Johnson is once again where he wants to be: centre-stage. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.