Government warned over fuel costs
September 5, 2008
The government is being warned it could face public hostility over the rising cost of fuel bills.
Labour backbencher Fabian Hamilton says the decision not to give a one-off payment to help poorer households could have serious consequences.
He has tabled a Commons motion calling for a windfall tax on energy companies.
Gordon Brown said in a speech on Thursday there would be no "short-term gimmicks or giveaways" and the focus would instead be on energy efficiency.
He also said he was "cautiously optimistic" about the economy.
Mr Hamilton has warned ministers they could lose support from people who need help paying bills.
"The consequences for Gordon Brown and the government could be very serious indeed," he said.
"They could further lose support from those people who look to the government for the help that they need right now."
Mr Hamilton also said support from Labour's strongest backers "might fade away considerably".
Permanent fix
In a speech to the Scottish Confederation of British Industry, Mr Brown said the government was working with utility firms "to address the problems caused by the impact of world oil prices on gas and electricity bills".
The Cabinet Office minister, Phil Hope, insisted help was being targeted at middle and low-income families.
"What we want to try and do is try to ensure that we bring down household bills permanently, not a temporary one-off fix but permanent, and also provide some immediate help to those families that need it the most."
One group that agrees with Gordon Brown that improving energy efficiency should be prioritised is the Local Government Association, which argues it should be funded by the energy companies.
The association - which represents councils in England and Wales - says its research has found that the companies increased pay-outs to shareholders by more than a quarter of a billion pounds over the past year.
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