“Capping prices for all businesses is a waste of taxpayers’ money”

Failure to help cut demand for energy would be ‘reckless’ waste of public money, a think tank has said

Although the government has already unveiled plans to cap business energy bills for the next six months, there are still concerns about whether this measure can future-proof Britons against future price shocks.

Darren Jones, the Labour MP who chairs the Business, Energy and Industrial Strategy Committee, said: “Capping the price for all businesses is a waste of taxpayers’ money.”

Responding to reported tax cuts included in the mini-budget, Mr Jones also tweeted: “This isn’t about tax cuts. It’s about austerity and cutting public services.

“That’s the real outcome of reckless tax cuts, which will result in higher debt, high-interest rates and another fall in the value of the pound. Reckless and dangerous.”

Capping energy prices without a major drive to help people use less energy would risk a “reckless” use of taxpayers’ money, a think has said.

The Social Market Foundation (SMF) said the government’s new Energy Bill Guarantee, which uses public money to help cover the cost of energy must be accompanied by a significant push to reduce overall energy consumption.

In a new report, the SMF stated: “As gas-generated heat leaks through our drafty roofs, walls, floors and windows this winter and next, it will take with it billions of pounds in public money.

“In the months ahead, insulating homes will not just be good health, climate, and welfare policy, but also a matter of fiscal responsibility.”

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