Miliband: Labour Would Freeze Energy Prices

Written By Unknown on Selasa, 24 September 2013 | 22.12

Ed Miliband has vowed he would freeze gas and electricity bills for 20 months if Labour regains power at the next election.

The party leader told its conference in Brighton that he would pass new laws to enforce the freeze while the energy sector was overhauled.

Labour claims the move will save households £120 a year and businesses £1,800 between May 2015 and January 2017.

The dramatic announcement puts Mr Miliband on a collision course with the "Big Six" energy companies, which stand to lose £4.5bn and have not been consulted.

"The companies won't like it because it will cost them money but they have been overcharging people for too long because the market doesn't work. It's time to reset the market," he said.

Ed Miliband and Justine Ed Miliband and wife Justine arriving at the hall before his conference

He accused the coalition of allowing energy prices to spiral because David Cameron did not have "the strength to stand up to the strong".

An average family's bill has risen by almost £300 since 2010 and companies now say energy is the second biggest cost they face, after wages.

A report last weekend from consumer group Which? also estimated that flaws in the market had left consumers paying £3.9bn a year too much.

Labour has already vowed it will pass new laws to split energy companies into generation and retail arms, create more competition and replace Ofgem with a tougher watchdog.

Aides said firms should be able to absorb the freeze because of their large profits and challenged Mr Cameron to hold bills down if they try to dodge it by hiking prices early.

Consumer group Which? immediately welcomed the plan, claiming it would give "hope to the millions worrying about how they can afford to heat their homes".

Executive director Richard Lloyd said: "We now look forward to seeing the detail of how this will work.

"Wholesale costs are the biggest part of the eye-watering rises to energy bills that people have faced over the last ten years.

"Making the wholesale market competitive by separating energy generation from supply is essential to help keep prices in check."

Labour Leader Ed Miliband Gives His Keynote Speech At the Annual Party Conference The Labour leader spoke for 63 minutes without notes

Mr Miliband had spent weeks honing his speech, which lasted 63 minutes, after a summer of recrimination over his leadership and the party's lack of direction.

Speaking without notes, he claimed soaring energy prices were part of a "cost-of-living crisis" which had left ordinary people struggling while the "privileged few" prospered.

He repeatedly declared "Britain can do better than this" as he accused Mr Cameron and George Osborne of leading a "race to the bottom".

And he insisted he had shown his strength by standing against his brother for the top job and refusing to support British military intervention in Syria.

"Leadership is about risks and difficult decisions. It's about those lonely moments when you have to peer deep into your soul," he said.

He predicted a "big fight" between now and the next election, but insisted he would relish going up against Mr Cameron in a test about leadership and character.

Mr Miliband will hope the address will move his party on from the damaging revelations about the Blair-Brown years revealed in Damian McBride's memoir.

Seeking to flesh out Labour's economic policy, he unveiled plans for a £800m tax break for smaller firms - paid for by cancelling a 1% corporation tax cut due in 2015.

Labour Party Conference

He vowed to reverse the hike in business rates due in April 2015 and freeze the levy the following year, a move worth around £450 on average over two years for 1.5million firms.

"We have to support our small businesses, the vibrant, dynamic businesses that will create wealth in Britain," Mr Miliband said.

However, business leaders were critical of the decision to fund it by keeping corporation tax higher, accusing him of "robbing Peter to pay Paul".

IoD director general Simon Walker warned it would harm Britain's competitiveness and put off foreign investors at a time when the country had to show it was open for business.

He said: "The Government has spent three years telling the world that we are open for business, and reductions in corporation tax have been a key part of that strategy.

"It's a dangerous move for Labour to risk our business-friendly environment in this way, at the same time as announcing a new bank levy."

Other measures included:

:: confirmation that the so-called "bedroom tax" would be scrapped, which prompted a standing ovation in the hall;

:: a "route map" to take all the carbon out of Britain's energy by 2030, creating one million jobs;

:: breakfast clubs and after-school care in primary schools, to help working parents.

Mr Miliband claimed Britons were "fed up of a Government that doesn't understand their lives and a Prime Minister who can't walk in their shoes".

He said Mr Cameron would "resume his lap of honour" about the economic recovery at the Tory conference next week, when he should be on a "lap of shame".

Borrowing a slogan from Ronald Reagan's presidential campaign in 1980, he called on voters to ask themselves in 2015 "am I better off now than I was five years ago?".

"You've made the sacrifices but you have not got the rewards. You were the first one into the recession, but you are the last one out," he said.

Delegates also loudly applauded when he attacked Tory peer Lord Howell for suggesting fracking should happen in the "desolate" North East.

Arguing that the Tories are out-of-touch, he said: "The Tories call them inhabitants of desolate areas, we call them our friends, our neighbours, the heroes of our country."

On reform of Labour's union links, Mr Miliband insisted he understood why some people were "uncomfortable" urged union chiefs to work with him.

"I don't want to end that link. I want to mend that link and hear the voices of individual working people in our party louder than before," he said.


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