MP derides Mrs May’s ‘Marxist’ cap on prices

THERESA May’s plan to cap energy bills ran into trouble last night as she was accused of living in a ‘Marxist universe’ and warned some households could see their prices rise.

Ministers unveiled legislation yesterday that will give regulators the power to set maximum gas and electricity prices for 18million households on standard variable tariffs.

Business Secretary Greg Clark said the cap, which will not come into force until next year, would run initially until the end of 2020, but could be extended into 2023.

Tory MP Sir Desmond Swayne drew a comparison with universities. He said: ‘I want to escape this Marxist universe. We cap university fees and, lo and behold, all universities charge the maximum.’ Julian Jessop, of the Institute of Economic Affairs, said: ‘Given the cap is unlikely to be introduced until next year, suppliers could just raise prices in the meantime.’