Posts Tagged ‘George Osborne’

Tom Watson is readers’ hackgate hero

25/07/2011, 08:00:54 AM

In a close fought contest, Tom Watson has emerged as the Uncut readers’ hackgate hero.  His intervention on David Cameron during the Parliamentary statement was the public’s choice for goal of the month with 26% of the vote, 4% ahead of his other entry, the questioning of Rupert Murdoch at the Select Committee which secured 22%.

Ed Miliband’s pivotal PMQ performance from the start of July was joint third with Dennis Skinner on 20% of the vote, followed by Steve Coogan on 12%.

In voting throughout Friday, Ed Miliband built up a solid lead over the chasing pack, but was overhauled on Saturday by Watson’s two entries. Despite a late rally on Sunday, Miliband was not able to catch Watson.

The vote reflects the pivotal role Tom Watson has played in doggedly pursuing this issue for the past few years as well as the quality of his contributions in the Parliamentary statement and the Select Committee hearing.

As the scandal has unfolded, the twittersphere has been abuzz with who would play the central characters in the inevitable movie. This being a British scandal, the casting choices are somewhat different to the Redford and Hoffman partnership in All The President’s Men.

Currently the hot favourite to pick up the plum part of Tom Watson is Nick Frost.

They’ve been tweeting and agreeing though who Simon Pegg will play remains unclear. But given the nature of a scandal which continues to grow and grow, there are bound to be some new casting opportunities that emerge in the coming days.

Chief amongst these will potentially be the role of George Osborne. Studiously silent throughout proceedings so far, he has all the makings of a villain who emerges in the third reel as the puppet master, pulling the strings. (more…)

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Let’s capitalise on Tory twitching on the economy

13/06/2011, 01:00:05 PM

by Jonathan Todd

Public debt, said to be the consequence of Labour largesse, is the problem for the governing parties, and aggressive cutting the medicine. Labour contends that this remedy is too tough to close the deficit. As we recover from a global shock of 1929 proportions, slower cuts are required for strong enough growth to generate the tax revenues needed to achieve deficit closure. Lack of growth, as well as the deficit, is the problem targeted by Labour.

Are these well-established positions shifting?

Not as far as Labour is concerned. Some twitching can, however, be detected on the government side.

First, John Redwood wants an improved growth strategy. This is echoed by Liberal Democrat Mark Littlewood. This doesn’t mean the Tories and Liberal Democrats are about to concede, as Labour has protested, that they have no growth strategy. Since the formation of the government they have argued that the deficit needs to be addressed to retain the favour of bond markets and so control upward pressure on interest rates. They prefer this monetary stimulus to greater fiscal support. Yet the comments of Redwood and Littlewood are not insignificant. They acknowledge that the resources of the shrunken state could better target growth.

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Osborne also needs a political Plan B

09/06/2011, 12:00:48 PM

by Kevin Meagher

“When the facts change, I change my mind” remarked the great John Maynard Keynes. Easy for economists. As George Bernard Shaw noted, if you laid them all end to end they still could not reach a conclusion.

Chancellors, on the other hand, cannot readily change their minds. They have to come to a conclusion; and then they have to stick to it. Their personal judgement is indelibly stamped on the government’s macroeconomic policy. They are locked into their strategies and directions of travel. Any deviation risks a fatal leaching of trust and credibility.

Of course, nothing changes with economic policy until it all changes. Which begs the question: does George Osborne have a Plan B in case the economy runs out of puff?

If he does, he’s not telling. Hardly surprising really; chancellors cannot be “a little bit pregnant”. It’s either one plan or the other.

Either way, Osborne is no slouch. He knows the economic outlook is precarious. And whatever else he is, the chancellor is a politician first and foremost. Economics – the dismal science, according to Carlyle – is a second order priority for him. He knows that the ice beneath his feet is thinning and he does not intend to sink.

If growth falters and requires a revision in policy, Osborne cannot afford for it to be on his watch. Although it would kill him to do so, he should heed Gordon Brown’s warning: there are two sorts of chancellor: those who fail and those who get out in time.

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Brown haters remember: what goes around comes around

25/05/2011, 07:00:17 AM

by Kevin Meagher

So George Osborne is to officially nominate French finance minister, Chstistine Lagarde, to replace Dominique Strauss-Kahn as managing director of the international monetary fund.

In the process, Gordon Brown’s potential candidacy for the role has been banjoed before it even (officially) began. His pitch well and truly queered.

The black spot was pushed across the table to him last month when Cameron said he “might not be the most appropriate person” for a role “work[ing] out whether other countries around the world have debt and deficit problems”.

A bit rich, perhaps, coming from the former special adviser to Norman Lamont on Black Wednesday, but there you go.

Now it is suggested that David Cameron intends to champion Peter Mandelson for the soon to be vacated role as director general of the world trade organisation; suitable political cover, he no doubt thinks, for not backing Brown’s IMF bid.

Now there’s nothing wrong with a bit of tribal disdain for your political opponents. In fact, I would go further; it is impossible to hold ministerial office without doing some things badly and having at least part of your record that deserves to have rocks thrown at it.

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Thursday News Review

12/05/2011, 06:53:52 AM

£60m, a drop in the Future Job Fund’s ocean

David Cameron and Nick Clegg will be together at an event later to launch a government drive on youth unemployment. The prime minister and his deputy will announce a £60m package to boost work prospects and vocational education. They will commit in their appearance in London to tackle “structural barriers” to young people starting a career. It comes as the coalition is under more strain after the flagship policy of directly elected police commissioners was defeated in the House of Lords. – BBC News

The Government has announced a £60m funding boost to help youth employment. As nearly 700,000 14- to 18-year-olds are currently not in employment or full-time education, it is hoped the cash will help boost apprenticeships and reform vocational education. The announcement comes as 100 large companies and tens of thousands of small companies across the country have responded to the Government’s call and pledged to offer work experience places. In total the coalition will provide funding for up to 250,000 more apprenticeships over the next four years, and funding for 100,000 work placements over the next two years. The £60m will be spent over the three years and fund more early access Work Programme places, increase the capacity of Jobcentre Plus to support teenagers who are not in education, employment or training and pay for a new £10m per year Innovation Fund to help disadvantaged people. – Yorkshire Post

The war on red tape claims its first victims

Unions have rounded on the government over plans to water down workers’ rights to “make it easier for businesses to grow”. Lib Dem minister Ed Davey will announce the new areas of employment legislation up for review at the Institute for Economic Affairs as the government attempts to clear away restrictions for employers. It will consult on cutting compensation payments for discrimination, reducing the current 90-day timescale for firms to consult over job losses, and changing the Transfer of Undertakings Protection of Employment Regulations (Tupe) which protects the pay and conditions of public sector workers transferred between companies. One law firm has warned that the move will disadvantage women and ethnic minority workers. The government is already simplifying the employment tribunal system, looking at extending the period before an unfair dismissal claim can be brought and reviewing the system for managing sickness absence. – the Guardian

Workers are set to receive less protection against redundancy, dismissal and workplace discrimination as the Chancellor George Osborne tears up sections of employment law so businesses can dispose of their staff more easily. Mr Osborne has proposed imposing a cap on awards given in cases of discrimination and abuse in the workplace on the grounds of race or gender. Employers will also be able to sack people more quickly. As well as introducing fees and new rules to prevent “vexatious” claims at employment tribunals, the Government wants to review the unlimited penalties currently applied in employment tribunals, simplify the administration of the national minimum wage and reform the consultation period for collective redundancies. Mr Osborne attacked the trade unions as “the forces of stagnation” who “will try to stand in the way of the forces of enterprise”. The Chancellor’s words were criticised by the unions and Labour Party. John Denham, the shadow Business Secretary, said: “George Osborne’s only idea for growth is to make it easier to cut pay and pensions, dismiss employees without giving time to plan for the future, and make working life more insecure. Successful companies have a workforce that is confident, dedicated and fairly rewarded.” – the Independent

Lords ‘rip the heart’ out of policing bill

Rebel Liberal Democrats scuppered flagship Tory plans for elected police commissioners last night. Former Met chief Ian Blair sided with Lib Dem peers to inflict a bruising Lords defeat on David Cameron. The introduction of elected police chiefs – with the power to hire and fire chief constables – is the Prime Minister’s flagship law and order policy. The Tories say it is vital for making police more accountable to the public. But peers voted to change the plan so that commissioners are appointed by policing panels – not the public – leaving the plan worthless. Liberal Democrat Baroness Harris of Richmond, who led the revolt, said the proposals ‘put so much power in the hands of one person’ that they posed ‘great risks to policing’. The independent peer claimed there was nothing to stop a police commissioner ‘just announcing that he has got rid of the chief constable, or that he wishes to get rid of the chief constable or he has no confidence in the chief constable.’ Analysis of division lists showed there were 13 Lib Dem rebels. The Government’s position was supported by 36 Lib Dem peers. Shadow home secretary Yvette Cooper said: ‘The Lords have ripped the heart out of this deeply flawed flagship Bill’. – Daily Mail

David Cameron suffered a major set-back last night after his flagship plan for elected police commissioners was chucked out in the House of Lords. Peers instead backed a rebel Lib Dem move that would see the commissioners appointed rather than directly elected. The PM wanted to see commissioners elected from May next year to replace police authorities in England and Wales. They would have the power to hire and fire chief constables and set forces’ budget and “strategic direction”. But under Lib Dem Baroness Harris of Richmond’s amendment, the chiefs would be chosen by a police and crime panel and not by the public. She raised deep fears over plans that would pose “great risks to policing”. – Daily Mirror

Change or lose

Ed Miliband has been given an astonishing warning by a senior shadow Cabinet minister that he is on course to lose the next election. Shadow culture secretary Ivan Lewis, who backed David Miliband in the Labour leadership contest, said the party was seen as one of the ‘North, benefit claimants and immigrants’. His remarks are the most serious internal criticism of Mr Miliband since he became Labour leader last September. They reflect growing anxiety among a rump of Blairite MPs that he is appealing only to core voters, rather than reaching out to swing voters who will decide the next election. They are calling on Mr Miliband to change his strategy after results in last week’s local elections that were worse than those of Michael Foot – Labour’s least successful leader ever. Mr Lewis said the elections showed that so-called ‘squeezed middle’ voters were not yet returning to the Labour fold. In a provocative speech to the modernising group Progress last night, Mr Lewis warned that southern voters see Labour as standing up for other people. – Daily Mail

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Thursday News Review

14/04/2011, 06:40:54 AM

Cameron adds fuel to the fire

David Cameron will today make the provocative claim that communities across Britain are being damaged by the record levels of immigration of the last decade. He will accuse some new arrivals of not wanting to integrate with their neighbours, leaving some areas suffering “discomfort and disjointedness” following dramatic population shifts. He will also risk accusations that he is inflaming tensions over race in a local council elections campaign speech asserting that immigration has been too high for too long.  But an unrepentant Mr Cameron will insist he is right to speak out on an issue that concerns millions of people – and accuse the last Labour government of fuelling support for the British National Party by refusing to address popular concerns on the subject. – the Independent

And in words that will alarm many of his Lib Dem partners he will claim many immigrants don’t want to fit in – accusing them of fuelling social pressures and dividing communities. He will say: “It has placed real pressures on communities up and down the country. “Not just pressures on school, housing and healthcare – though those have been serious – but social pressures too. When there have been significant numbers of new people arriving in neighbourhoods, perhaps not able to speak the same language as those living there, on occasions not really wanting or even willing to integrate, that has created a kind of discomfort and disjointedness in some neighbourhoods.” He will warn that the Government will never be able to properly control immigration without first tackling welfare dependency. He describes them as “two sides of the same coin”. – the Mirror

The Downing Street press team will no doubt know what they were doing, and the type of coverage that they were aiming to achieve, so there may be a view that there are short-term political benefits to this – the Telegraph reports says the timing of the speech is influenced by wanting a popular theme for the local elections, and the well informed Tim Montgomerie of ConservativeHome also emphasises tensions with the Tory grassroots and right-wing presss seeing this as an “attempt to steady a panicking ship with a tough speech on immigration” as the local campaigning begins, also tweeting: Increasingly nervous about core Tory vote, Cameron makes immigration speech. – Next Left

How long till Lansley’s P45 arrives?

Health secretary Andrew Lansley apologised to nurses yesterday after they backed a vote of no-confidence in his controversial NHS reforms. Almost 99 per cent of delegates at the Royal College of Nursing said they did not support the Health Secretary – the first time such a motion has ever been passed against a minister. Mr Lansley later said sorry to the nurses several times and admitted the no confidence vote was a ‘rebuke’. It is the latest blow for the beleaguered Health Secretary, whose plans to scrap Primary Care Trusts and give GPs greater control of NHS cash have come under sustained attack from leading doctors, MPs and even members of the Coalition. – Daily Mail

Andrew Lansley coupled an apology to Britain’s nurses for failing to explain his health reforms with an impassioned statement of his commitment to the NHS. Hours after the Royal College of Nursing voted 99% in favour of a motion of no confidence in him at the RCN congress in Liverpool, the health secretary told nurses that he would have voted with them if he thought his plans would undermine the health service. The health secretary sought to underline his commitment by making clear that his only ambition in politics is to serve as health secretary. He said he had told the prime minister of this “publicly and privately”. Downing Street fears that Lansley’s failure to sell the reforms, which are designed to transfer commissioning powers from Primary Care Trusts to new GP-led consortiums by 2013, is jeopardising years of work in neutralising the NHS as an issue. Clegg must secure major changes to the bill to win over his party, which voted against the reforms at its spring conference last week. – the Guardian

Ed plots to kill off NHS reforms in the Lords

Labour has held secret talks with independent peers in a bid to ‘kill’ the Coalition’s controversial health reforms in the House of Lords, Ed Miliband revealed yesterday. The Labour leader said shadow health secretary John Healey had held a series of joint briefings with crossbench peers in recent weeks in a bid to sabotage the Health Bill when it arrives in the Lords in the summer. The Government does not have a majority in the House of Lords and the crossbenchers could play a key role in watering down the planned reforms. Some Coalition peers, including senior Lib Dem Shirley Williams and former Tory Party chairman Norman Tebbit, have also voiced serious concerns about the health plans. Mr Miliband said the legislation was already in ‘intensive care’ and now needed to be ‘killed off’. He added: ‘The answer to a bad Bill is not to slow it down but to junk it.’ – Daily Mail

Osborne wades in to the AV battle

The chancellor has launched an extraordinary attack on the Yes to AV campaign, highlighting alleged conflicts of interests in its funding.  George Osborne’s accusations are just the latest dispute in an increasingly bitter and bad-tempered campaign which has seen both camps fling insults and accusations of assisting the far-right.  “What really stinks is actually one of the ways the Yes campaign is funded,” Mr Osborne told the Daily Mail. The Electoral Reform Society, which is actually running some of the referendum ballots, and is being paid to do that by the taxpayer, stands to benefit if AV comes in. That organisation, the Electoral Reform Society, part of it is a company that makes money – is funding the Yes campaign. That stinks frankly and is exactly the sort of dodgy, behind the scenes shenanigans that people don’t like about politics.” – politics.co.uk

George Osborne was at the centre of a legal row last night after his attack on voting reform backfired. The Chancellor was accused of demeaning his position, and lawyers were called in to separate the opposing sides in the impending referendum on changing how MPs are elected. Mr Osborne claimed that the Yes campaign to scrap the first-past-the-post voting system was involved in “dodgy shenanigans” in funding – raising the temperature in an increasingly acrimonious contest. Electoral reformers called in solicitors to try to stop the dispute escalating any further, ahead of the 5 May ballot on whether to switch to the alternative vote for Westminster elections. The Yes campaign has pointed to the many wealthy Conservatives handing large sums to the opponents of electoral reform. Backed by Mr Osborne, No to AV countered by alleging that the Electoral Reform Society (ERS), which has given £1.1m to the pro-AV campaign, faced a financial conflict of interest in pressing for a Yes vote. No to AV claimed that the society and its subsidiaries had received more than £15m in contracts from the public purse over the past three years. – the Independent

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That high risk economic policy again: ours

13/04/2011, 12:00:11 PM

by Rob Marchant

Recess. Time for us all to reflect on where we’re at before the elections are upon us. And what will people be wanting to hear on the doorstep this month? That the cuts are awful, and that we’re with them. Right?

Probably.

The idea that we might be taking a risk with this line seems particularly wrong-headed, as the Tories are wrong and we are right on the pure economics of the cuts. KrugmanStiglitz, and other luminaries agree (hmmm, which should we trust, two Nobel prize winners or George Osborne? Let’s think). The trouble is, we are taking a risk. As I have observed before, it is often not so much the economic policy itself, which is essentially right, but our positioning on that policy – the politics – which is risky.

Our approach is risky, perhaps as much as the Tories’, in its way, because it is predicated on the potential for economic disaster from cutting too far, too fast. And, of course, that disaster may not happen or worse, may happen, but not in a way which we can prove. It may be a little early to assume, as Liberal Conspiracy’s Sunny Hundal seems to, that we will be incontrovertibly proved right.

By allowing the two sides of the cuts narrative to dominate our thinking – the negative effect on people on the one hand, and on growth on the other – we miss the future impact. We forget that, while the first is undeniable, it will pass, and that the second may turn out be difficult to prove. And, when faced with the fait accompliof the policy, what then?

Two golden rules of politics, or any struggle for that matter: choose your battles carefully and play for the long-term, not the short.

One problem with opposition is that you campaign heavily against something, which later comes to pass. And, after a short while, it is as if things had always been that way, as the Tories found to their cost. They campaigned against everything: gay rights, an independent bank of England and devolution. Things that nowadays no sensible Tory would dream of trying to reverse, but for which dire consequences were nonetheless predicted. They were then faced with the gritted-teeth reality of looking on, impotent, as these policies were comfortably put in place. They were the perceived losers of the argument. And the dire consequences, of course, never materialised.

It’s not for the faint-hearted, opposition. (more…)

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Saturday News Review

09/04/2011, 09:00:04 AM

News International admits liability over phone hacking

Rupert Murdoch’s News International has issued a public apology to eight victims of phone hacking, including the actor Sienna Miller and former culture secretary Tessa Jowell, and admitted for the first time that the practice was rife at the News of the World. In a move likely to cost the company many millions of pounds, it said it would offer compensation to some of the 24 high-profile figures who have started legal proceedings against the paper in the high court for breach of privacy. It also admitted its previous investigations into hacking had not been “sufficiently robust”. The unprecedented statement of contrition is a remarkable volte face for the country’s most powerful news organisation that was claiming until the start of this year, in the face of growing evidence to the contrary, that hacking was the work of a single reporter. – the Guardian

News International’s admission that it was responsible for the hacking of the phones of public figures ranging from a former member of the Cabinet to a Hollywood actress represents a seismic moment for the management of Britain’s biggest newspaper publisher, reverberating all the way back to Rupert Murdoch. The acceptance of liability on a grand scale has implications which stretch across the Atlantic to the heart of News Corporation. Why, Mr Murdoch will surely ask himself, didn’t he take a personal grip of this situation before it reached such a pass? At Dow Jones & Co, the publishers of Mr Murdoch’s prized Wall Street Journal, the chief executive Les Hinton might ask himself why, as executive chairman of News International (NI) throughout the period in question, he presided over an organisation responsible for such behaviour, but told MPs that “there was never any evidence delivered to me” suggesting that phone hacking went beyond Clive Goodman, the royal editor of the News of the World jailed in January 2007. – the Independent

The biggest question is for the culture secretary, Jeremy Hunt, who was poised to wave through News Corporation’s bid for full ownership and control of BSkyB, thereby creating the largest and most powerful media company Britain has ever seen. It is now apparent his predecessor as culture secretary, Tessa Jowell, had her phone hacked. Imagine if a bank had hired investigators to hack the chancellor of the exchequer’s phone. It is difficult to imagine that Mr Hunt could possibly allow the bid to go through in the circumstances when so many unanswered questions hang over the company and where so many documents have yet to be revealed. Only a full judicial inquiry can now answer the many unresolved issues. – the Guardian

Now George’s business buddies make U-turn on growth

Some of the UK’s most prominent business leaders, including individuals who gave their personal stamp of approval to the chancellor’s aggressive spending cuts, have said they have growing concerns about the state of the economy, warning of weak growth and rising inflation ahead. Archie Norman, the former Tory MP who now chairs ITV, said the government’s growth targets were too optimistic. The former Asda boss Andy Bond, Carphone Warehouse founder Charles Dunstone, Tory peer Lord Wolfson, who runs Next, and Yell chairman Bob Wigley predicted tough times ahead as soaring inflation dents consumer spending power, although they continue to support George Osborne‘s austerity strategy. Bond expressed doubt about the ability of the private sector to create as many jobs as hoped. “I don’t think the private sector is going to be able to pick up the slack in this climate,” he said. Bond, who ran the UK’s second largest supermarket chain for five years, forecast a two-year “retail recession” earlier this week. He was one of 35 bosses who signed a letter to the Daily Telegraph six months ago supporting George Osborne’s plan to slash the deficit and arguing that businesses “should be more than capable of generating additional jobs to replace those lost in the public sector”.- the Guardian

Clegg to make AV plea

Nick Clegg is to compare proposed changes to the system for electing MPs to giving women the vote and lowering the voting age to 18. The Lib Dem leader will say arguments against the alternative vote (AV) will look as “nonsensical” in the future as those against female suffrage now do. But one senior Labour politician said his reading of history was “dodgy” and the current first-past-the-post system had “stood the test of time”. Voters will be asked whether to retain first-past-the-post or switch to the alternative vote – where voters can rank candidates in order of preference – in the UK-wide poll. Putting the case for AV in a speech in London, Mr Clegg will say it is a “very British reform” and represents an “evolution” of the existing system. Referring to the series of legislative steps which extended the voting franchise in the 19th and early 20th Centuries, he will say a switch to AV would fit into a pattern of constitutional change “by instalments”. – the BBC

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Bullingdonia: Osborne’s banana republic

25/03/2011, 01:32:24 PM

By Dan Cooke

In other news this week, concerns were raised about standards of governance in the Republic of Bullingdonia.

The ruling party, with a strong traditional base in the south east of the country,  imposed a shock 12% tax hike on the country’s oil and gas industry. This is overwhelmingly based in the state’s northern province where the governing party recently won only one of all 59 constituencies in the recent general election.

Critics charged that, while the government of Bullingdonia claimed to be promoting growth, the levy would undermine the competitiveness of one of the country’s leading industries and that the lack of consultation on its introduction would undermine the certainty needed for international investment. While the ruling party argued they were fulfilling a manifesto commitment to a “fair fuel stabiliser”, it was pointed out that such plans never previously envisaged a levy on the oil industry. (more…)

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Revealed: Fuel stabiliser set to hike household energy bills

25/03/2011, 07:00:01 AM

by Atul Hatwal

Ofgem research contradicts government claims that costs will not be passed onto consumers

As George Osborne and Danny Alexander struggled to deny that increased taxes on North Sea oil would simply be passed on to consumers on petrol forecourts, it emerged that these taxes would also hit hard-pressed households’ energy bills.

Wholesale costs faced by the big household energy suppliers, who are involved in energy exploration and production in the North Sea, are set to rise when these new taxes are levied.

New research released by Ofgem this week revealed how these increased costs will feed through into household energy bills.

The report, entitled Do Energy Bills Respond Faster To Rising Costs Than Falling Costs, was sneaked out on Monday. It details how energy suppliers don’t just pass on an increase in the wholesale costs of energy, they hike customer bills by almost 10% more than the original cost increase.

Applying Ofgem’s analysis to the changes announced in the budget, all households that use energy from the major suppliers facing higher oil and gas taxes will be hit, regardless of whether they benefit from the cut in fuel duty.

The result will be millions of non-drivers subsidising motorists’ petrol costs through their energy bills, raising new questions about David Cameron’s claim that this would be the “greenest government ever”.

Even worse, Ofgem’s analysis shows that when energy suppliers’ wholesale costs decrease, they don’t pass on the full benefit to consumers. Instead, they pocket over 60% of the difference, leaving prices much higher than before the initial increase.

This means that the fuel stabiliser is likely to permanently ratchet up energy prices for consumers. (more…)

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