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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We're running out of time to stop a hard Brexit - and the consequences are terrifying

Liam Fox has nothing to say and Labour has thrown the towel in. 

Another day goes past, and still we’re no clearer to finding out what Brexit really means. Today secretary of state for international trade, Liam Fox, was expected to use a speech to the World Trade Organisation to announce that the UK is on course to leave the EU’s single market, as reported earlier this week. But in a humiliating climb-down, he ended up saying very little at all except for vague platitudes about the UK being in favour of free trade.

At a moment when the business community is desperate for details about our future trading arrangements, the International Trade Secretary is saying one thing to the papers and another to our economic partners abroad. Not content with insulting British businesses by calling them fat and lazy, it seems Fox now wants to confuse them as well.

The Tory Government’s failure to spell out what Brexit really means is deeply damaging for our economy, jobs and global reputation. British industry is crying out for direction and for certainty about what lies ahead. Manufacturers and small businesses who rely on trade with Europe want to know whether Britain’s membership of the single market will be preserved. EU citizens living in Britain and all the UK nationals living in Europe want to know whether their right to free movement will be secured. But instead we have endless dithering from Theresa May and bitter divisions between the leading Brexiteers.

Meanwhile the Labour party appears to have thrown in the towel on Europe. This week, Labour chose not to even debate Brexit at their conference, while John McDonnell appeared to confirm he will not fight for Britain’s membership of the single market. And the re-election of Jeremy Corbyn, who hardly lifted a finger to keep us in Europe during the referendum, confirms the party is not set to change course any time soon.

That is not good enough. It’s clear a hard Brexit would hit the most deprived parts of Britain the hardest, decimating manufacturing in sectors like the car industry on which so many skilled jobs rely. The approach of the diehard eurosceptics would mean years of damaging uncertainty and barriers to trade with our biggest trading partners. While the likes of Liam Fox and boris Johnson would be busy travelling the world cobbling together trade deals from scratch, it would be communities back home who pay the price.

We are running out of time to stop a hard Brexit. Britain needs a strong, united opposition to this Tory Brexit Government, one that will fight for our membership of the single market and the jobs that depend on it. If Labour doesn’t fill this gap, the Liberal Democrats will.

Tim Farron is leader of the Liberal Democrats.