UK Labour Demands Recall of Parliament to Tackle Energy Crisis




  • In World
  • 2022-08-18 21:30:00Z
  • By Bloomberg

(Bloomberg) -- The UK Labour Party demanded an early recall of Parliament to tackle soaring household power and gas prices and stave off the worst effects of the cost-of-living crisis.

Most Read from Bloomberg

  • Apple Targets Sept. 7 for iPhone 14 Launch in Flurry of New Devices

  • Covid's Harmful Effects on the Brain Reverberate Years Later

  • Biden Called Cheney After Her Loss to Trump-Backed Challenger

  • Xi and Putin to Attend G-20 Summit in Indonesia, Jokowi Says

  • After 2,240% Run, Tesla Visionary Leaves UK Fund Bleeding Money

With analysts forecasting bills will be three times higher this winter than last, the utilities regulator Ofgem is due at the end of the month to set the new level of a price cap on domestic energy that will take effect in October. But the UK's main opposition party said late on Thursday that households are already making "impossible choices" now to preempt higher costs later.

"With businesses and households on the brink, we cannot wait to act," Thangam Debbonaire, Labour's shadow leader of the House of Commons, said in a letter to Prime Minister Boris Johnson and the two candidates vying to succeed him, Liz Truss and Rishi Sunak. She called for the House of Commons to reconvene after its summer recess on Aug. 22, two weeks earlier than planned, in order to legislate to freeze domestic energy bills over the winter.

There's little chance Labour will succeed in its demand for a recall: It wants to push through a £29 billion ($35 billion) plan to freeze bills at current levels until April, with the state absorbing the cost. But Johnson has vowed not to make any major new fiscal decisions that would hamstring his successor, and both Sunak and Truss have expressed skepticism about the opposition plan.

Truss, the front-runner in the leadership race, has warned against "throwing money" at a short-term fix while declining to flesh out her plans for helping the most vulnerable households over the winter. Meanwhile Sunak, the former chancellor, on Thursday called Labour's plan a "blunt instrument" and a "gamble" that risks fueling a 1970s-style inflationary spiral.

"It's really risky for a government to borrow an enormous amount of money and pump that into the economy," Sunak told ITV in an interview. "That's when inflation gets worse, it's like putting fuel on the fire."

Most Read from Bloomberg Businessweek

  • Richest Silicon Valley Suburb Says Build Anywhere But Here

  • AMC's CEO Will Do Whatever It Takes to Keep His Company a Meme Forever

  • Chinese EV Maker BYD Aims to Conquer World Markets as the Un-Tesla

  • A Crypto Winter King Wants to Reanimate the Industry

  • Neobanks Are Struggling to Make Good on Their Lofty Promises

©2022 Bloomberg L.P.

COMMENTS

More Related News

Elon Musk
Elon Musk's Antics Turn Owners and Would-Be Buyers Against Tesla

(Bloomberg) -- This story was originally published on July 30. On Monday, Elon Musk infuriated Ukrainians when he suggested that the country seek a...

European Gas Drops as Mild Weather and Stockpiles Ease Nerves
European Gas Drops as Mild Weather and Stockpiles Ease Nerves

(Bloomberg) -- European natural gas prices extended declines as mild weather and ample stockpiles ease concerns about shortages. Most Read from BloombergElon...

RBA Surprises Market With Quarter-Point Hike, Currency Tumbles
RBA Surprises Market With Quarter-Point Hike, Currency Tumbles

(Bloomberg) -- Australia staked out an outlier position among major central banks, becoming the first to break with outsized interest-rate increases as it...

EV Demand Sparks Revival of US Manganese Mining After Decades
EV Demand Sparks Revival of US Manganese Mining After Decades

(Bloomberg) -- South32 Ltd. aims to accelerate development of the first new US manganese mine for decades as carmakers rush to secure supply of the metal...

Goldman, JPMorgan Among Primary Dealers in Saudi Local Debt
Goldman, JPMorgan Among Primary Dealers in Saudi Local Debt

(Bloomberg) -- Saudi Arabia appointed BNP Paribas SA, Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Standard Chartered Plc as primary...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: World