Badenoch insists more drilling will cut energy bills – Daily Business

Kemi Badenoch: ‘government needs to get out of the way’ (pic: DB Media Services)

Tory leader Kemi Badenoch will today insist that drilling for more oil and gas in the North Sea would cut energy bills, despite evidence from industry experts that it will make no difference to the price.

Ms Badenoch will be in Aberdeen arguing that her energy policy will save households £200 year because producing more oil and gas will raise revenue to enable cuts in carbon taxes and VAT.

“The Labour Party claim that more drilling in the North Sea won’t take a penny off bills. This is nonsense,” she will say.

“The British oil and gas industry could provide billions of pounds of tax revenue that the Government could use to cut taxes and cut bills.

“The industry just needs the Government to get out of the way and let them drill. The Conservatives are campaigning to Get Britain Drilling.”

Industry experts, including the chair of transition investment vehicle GB Energy Juergen Maier, have argued that producing more oil will not cut bills as it would be sold on international markets which would dictate the price.

In a television interview on Sunday , Ms Badenoch appeared to backtrack by admitting that “the drilling isn’t going to go directly onto people’s bills”.

However, in a later statement she said that bills would come down by using the additional tax revenue raised from the increased oil output to cut VAT and green levies.

“By drilling in the North Sea and scrapping Ed Miliband’s crazy green taxes, our Cheap Power Plan would reduce bills by £200 for everyone,” she said.

“Only the Conservatives have the plans and the team to deliver cheap energy, a stronger economy and a stronger country.”

Juergen Maier: more output will not cut bills

Dan Tomlinson, Exchequer Secretary to the Treasury, said the Tory leader’s policy did not stack up.

“Kemi Badenoch has admitted the central foundation of her energy plan won’t bring bills down,” he said. “Now she says the Tories would scrap the windfall tax which is helping tackle the cost of living.

“From trying to plunge our troops headfirst into war without a plan, to her complete mess of an energy policy, Badenoch is proving time and again that she’s completely out of her depth.

“Energy bills are coming down this week for families thanks to the actions of this Labour Government – action that was opposed by the Tories and Reform. While the Tories and Reform chase headlines, this Labour Government will remain focused on easing the cost of living for families across Britain.”  

Chancellor Rachel Reeves will today argue that the only way to bring bills down by investing in clean, homegrown power that reduces exposure to volatile global gas markets. 

She will encourage the G7 to follow the UK’s lead by accelerating investment in renewables and nuclear, not by continuing on the rollercoaster of global oil and gas prices.

Meanwhile, First Minister and SNP leader John Swinney , has said that a re-elected SNP Government will demand that Scotland’s energy is in Scotland’s hands “on day one” to allow for immediate action to bring energy bills down.

John Swinney: Section 30 demand (pic: DB Media Services)

The new government will draft a Section 30 order transferring power over energy to the Scottish Parliament and demand that the UK Government back it.

The likelihood of that happening is close to zero, but Mr Swinney will use it to help make the case for independence.

He said: “Scotland is one of the most energy rich countries in the world – but we pay some of the highest bills in Europe. 

“That is because for decades, Scotland’s energy wealth has flowed south to the Treasury rather than working for the people of Scotland.

“The process of a referendum will take time, so I want to begin the journey to independence on day one of the new term with the immediate transfer of powers over our energy.

“If Westminster will not act to bring down bills, they should get out of the way for a government that will.  It’s Scotland’s energy – and it should be in Scotland’s hands.

“And if the UK Government refuse, it will only confirm that if we want to make Scotland’s energy wealth work for Scotland and bring down bills, that is only available through the fresh start of independence that I am offering at this election.”

Scottish Labour finance spokesperson Michael Marra described the idea as “half-baked” and accused the SNP of squandering Scotland’s clean energy potential for years by “ditching its plans for a publicly-owned energy company, selling off Scotland’s seabeds on the cheap and breaking its green jobs pledge.

“They can’t build a ferry, they can’t run our NHS, and they can’t be trusted to keep their promises.

“John Swinney is not remotely serious about this half-baked plan – he just wants to avoid talking about this own record which has left Scots paying more and getting less.

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