Hammond push to kill off May’s cap on energy bills
CHANCELLOR Philip Hammond is flexing his political muscles by trying to kill off the Tories’ energy price cap.
The flagship policy could be dramatically watered down or even ditched in next week’s Queen’s Speech.
The Conservative manifesto promised to put a maximum price on gas and electricity tariffs to end rip-off bills for customers who do not change providers.
But sources said several Cabinet ministers – including the Chancellor – were lobbying for it to be dropped.
Business Secretary Greg Clark was yesterday said to be fighting a rearguard action to save the policy. Last night Theresa May was signing off the final list of Bills to be announced in Wednesday’s Queen’s Speech, in what is expected to be a radical slimming down of the Government’s programme.
However proposed legislation essential for Brexit, including the Great Repeal Bill and an Immigration Bill, will survive.
The manifesto pledged to introduce a ‘safeguard tariff cap that will extend the price protection in place for some vulnerable customers to more customers on the poorest value tariffs’. The policy was launched to help the millions stuck on over-priced tariffs offered by the Big Six energy giants.
But free market- supporting Tories argue the policy is antibusiness and intervening in markets will undermine competition.
Other policies set to be dropped include the so- called ‘dementia tax’, which was blamed for wrecking the Tory campaign.
Plans to only give the £200 a year winter fuel allowance to the poor- est pensioners could also be scrapped as part of the deal with the Democratic Unionist Party.
Last night Downing Street officials refused to comment on the contents of the Queen’s Speech.
It is understood that the deal between Mrs May and the DUP is done but full details will not be announced until next week.
After days of uncertainty, the Government announced the State Opening of Parliament will take place on Wednesday – two days later than originally scheduled. The ‘ confidence and supply’ arrangement will see the DUP vote for Government Bills and back Mrs May in crunch votes.
It is a less formal arrangement than a coalition, and DUP MPs will not take ministerial jobs.
No 10 officials said the Queen’s Speech would focus on ‘strengthening the Union, combating terrorism, delivering Brexit and delivering prosperity across the whole country’. It is thought coun- ter- extremism laws and powers voiced in the wake of the London Bridge attack will be formally announced.
With the number of Conservative MPs cut to 317, Mrs May needs the backing of the DUP’s ten MPs to reach the 320 required for a working majority in the Commons. If the Queen’s Speech were to fail it could trigger another election or even allow Jeremy Corbyn the opportunity to try to form a government.