Energy cost crusader Gordon Brown vowed to free Britain from “he “dictatorship of oil” by investing billions into both nuclear and renewable energy sources, he said on Thursday night in a keynote speech to the Scottish CBI, in Glasgow.
The Prime Minister’s vow comes only days after Chancellor Alistair Darling’s damning assessment of the current economic situation as the worst for 60 years.
The PM said that the Government would do all it could to help families pull through the economic downturn.
However, the PM moved quickly to quash speculation that there would be one-off payment to households, from the government, to soften the impact of escalating energy costs to the consumer. Such a policy had been considered by ministers after in-depth discussions with the major energy companies.
Instead, Mr. Brown’s Government is likely to release a package, which he values at around £1 billion, focusing upon long-term proposals by offering extra financial help from electricity producers to pay for home efficiency measures, targeted at low-income households.
Gordon Brown even went as far as to offer a glimmer of hope for the future by insisting that he was “cautiously optimistic” about Britain’s ability to ride out the current crisis.
In his speech last night the Mr Brown said: “Not short-term gimmicks or giveaways - but firm steps towards making every home in Britain more energy efficient, thus reducing bills not just temporarily, but permanently.
“You cannot address a long-term problem - the supply and demand for oil - with a short-term gimmick like a fuel duty stabiliser,” he added.
The call to pick up arms – or in this instance drills – has been firmly backed by business leaders.
Richard Lambert, Director General of CBI, said: "We welcome the emphasis the PM placed on the importance of diverse and low-carbon sources of energy."
But, true to current form Downing Street could be accused of acting unilatrerally and in this instance has been forced to show some concern that the package will disappoint ministers and Labour MPs alike, who are eager to see a big windfall tax on the electricity firms.
Ministers are focusing on extracting extra funding from the energy companies for the carbon emissions reduction target programme, a £2.75 billion, three-year obligation on energy suppliers to install home-based energy efficiency measures for people on low incomes, those with disabilities, and those aged over 70. But talks with the energy firms remian incomplete.
Government sources have said that all the additional direct government help to soften the impact of fuel bills had already been set out in the March budget when increases in the winter fuel allowance were announced, and will not have a further detrimental impact to the long-term future of the economy.