Tory chancellor Rishi Sunak has been posted “missing in action” by Labour in the ongoing energy crisis.
Labour’s Shadow Chancellor Rachel Reeves has written to the Chancellor calling on him to support energy intensive industries as the crisis escalates.
Reeves slammed Sunak for ducking big decisions after weeks of denials from the government about the energy and cost of living crisis
With whole sectors in crisis and energy intensive industries like steel, ceramics and glass calling on government to engage with them, Reeves ramped up its call on the Government to support the energy intensive industries.
Talks are continuing between industry and government Ministers following very public tensions between the Chancellor and the Business Secretary Kwasi Kwarteng over government support.
The Treasury flatly denied having been in talks with the Business department over any support but on Monday Kwarteng sent a formal request for help for industry from the Treasury.
Despite being on holiday in Marbella, Boris Johnson was urged to “bang ministerial heads together” to solve the energy crisis.
Johnson flew to Marbella for a week to stay with his family in a luxury private villa on the Costa del Sol, owned by Tory peer and minister Lord Goldsmith.
With warnings that some companies could be forced to stop production within days due to the sky-high cost of energy Gareth Stace, director general of UK Steel said: “With the reported government infighting between the Treasury and BEIS, the Prime Minister now needs to bang ministerial heads together, take control and remember that if he does nothing, then his levelling-up ambition will be left in tatters.”
Labour shadow chancellor Rachel Reeves demanded a guarantee that no business in energy intensive sectors will be allowed to fail, solely because of the current temporary increase in energy prices.
She said: “Our brilliant British industries are a crucial cornerstone of our economy, and we should be supporting them to boost our recovery.
“The Government should be protecting and supporting them through a crisis which has come about from their own lack of planning."
Reeves added: “They have a duty to get an immediate grip on this situation, and businesses need reassurance that this is happening.
“It’s crucial to also see the Government out reassuring the public that they won’t be hit with more rising costs as millions are left with less money in their pockets. Not doing so is looking increasingly out of touch.”
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