"Jam tomorrow." That will be the jibe thrown at Gordon Brown after he unveiled the Government's much-trailed measures to help people cut their rocketing fuel bills. The £910m package, funded by the energy companies, looks good on paper, and there is a strong argument for giving priority to the permanent reduction in bills that will be achieved by loft and cavity wall insulation, rather than the one-off cash payment sought by many Labour MPs but rejected by ministers.
There are two problems, however. The first is that ministers can't say how many people will be helped this winter by their three-year programme. The second is Brown's expectation that energy firms will not merely pass on the cost of the measures to consumers in higher prices. The companies already appear to be calling that into question, which knocks a bit of a hole in the Government's package. "Somebody has got to pay for this," David Porter, chief executive of the Association of Electricity Companies, said ominously.
Brown launched the scheme at his monthly Downing Street press conference, his first since the summer break and eagerly awaited in the Westminster village. Its initial verdict was that his holiday had done him some good. He didn't look like a man fighting for his survival as Prime Minister (which he is).
But Labour MPs, and some ministers, continue to doubt his ability to turn things round. They are worried that his relaunch will make little impact on the voters, and blame the Downing Street machine for allowing great expectations to build up about help for housing and fuel bills which Brown couild not meet. Many Labour MPs will be bitterly disappointed at the absence of a windfall tax in today's package. The threat of one was used to squeeze money out of the energy firms but there was little appetite among ministers to impose it. The public would certainly have noticed a windfall tax, which might have been very popular. "We're having a relaunch by stealth," groaned one Labour MP.
"Mr Brown [PM] said that he expected six million households to receive free loft or cavity wall insulation under the scheme by 2011" (TimesOnLine 11 sept 08)
Whilst on the World at One virtually at the same time Neil Marshall, chief executive with the National Insulation Association, on being asked how many of these homes could be insulated in the coming winter replied probably 120,000.
Who will carry this two million a year for it is 16 times the figure given by Neil Marshall. Surely an ex-chancellor is numerate or does he plan another wave of immigration.
Posted by: John Wood | Thursday, 11 September 2008 at 02:30 PM
This has turned out to be another damp squib from a wet and weak government. Now we have Brown's answer to rising fuel bills - wrap up warm for the winter!
http://theorangepartyblog.blogspot.com/2008/09/browns-energy-policy-wrap-up-warm.html
Posted by: the orange party | Thursday, 11 September 2008 at 03:48 PM
On Wednesday, 2nd July 1997, in his first Budget Speech, Gordon Brown told the House of Commons:
"Today with our new programme of training and jobs for young people we are able to expand the national programme of home insulation. Contractors within the home energy efficiency scheme, and voluntary organisations will be encouraged to take on young people to insulate the homes of pensioners. This will give jobs and new skills to our young people, help and protection to the elderly, and it will improve our environment."
If it hasn't worked over the past eleven years with Brown in total control of the Treasury, how the hell does anyone expect it to work now?
Posted by: eddie foster | Thursday, 11 September 2008 at 04:03 PM
Doesn't Gordon realize that these energy companies are just businesses, not charities, only interested in one primary thing, profits and as much as they can get their greedy hands on. Therefore Gordon I will tell you now that through 'stealth' and indirect charging, they will one way or the other get their dirty grubby hands on the £900 million plus you say they will have to pay into your system again at some time in the near future. This must be the most unintelligent decision that you have made and where your hope is ill-founded. Haven’t you heard of Owen-Lloyd of E.On, the one who very recently said ‘…the continued high gas and electricity prices would mean "more money for us"
Wake up Gordon, I thought that you were supposed to be the wisest of the wise chancellors. This appears suddenly a bit of a misdemeanour and where there was absolutely no truth in this rumour whatsoever.
Give us a pound Gordon, I promise that I will give it you back,…err sometime...err I promise, you know that you can trust me.
Dr David Hill
World Innovation Foundation Charity (WIFC)
Bern, Switzerland
Posted by: dr david hill | Thursday, 11 September 2008 at 06:51 PM
Cannot believe that a British PM steps onto the platform to launch a scheme to...help people lag their lofts. What are junior ministers for?
Posted by: Paul Williams | Thursday, 11 September 2008 at 10:05 PM
Gordon Brown has said that all pensioner households will recieve free insulation.HE HAS LIED AGAIN-only pensioners OVER 70 get it free.Other pensioners will get 50% off-perhaps
Posted by: Tony Brown | Saturday, 13 September 2008 at 01:59 PM