The Labour Government will put cheaper energy at the heart of its economic plan, with a major Budget package to give Portsmouth’s families breathing space now while delivering the long-term reform needed to bring down bills and help British businesses compete.
After years in which households faced soaring energy costs and British industry struggled with the price of power, the Government is choosing a different path: using the transition to clean power to deliver cheaper energy, greater security and a stronger economy.
From January, around 80 per cent of households in England, those in council tax bands A-D, will receive a £100 Household Energy Payment directly into their bank accounts, backed by £2.6 billion of support.
The Government will also extend the VAT cut on electricity until July 2027, helping families with the cost of their energy. And Labour will tackle unfair costs that have frustrated consumers for years, abolishing standing charges on gas bills, while turning next to standing charges on electricity.
It marks a decisive change from the Conservatives, who left Britain exposed to high energy costs and failed to build an energy system that delivered enough for families or British industry.
Labour is determined not to repeat those mistakes. That means stopping new policy costs simply being loaded onto household bills. A new cost control framework will be introduced at the Spending Review, while the planned hydrogen levy will be scrapped, with funding instead coming directly from the Exchequer.
The immediate package will partly be funded by asking the banking sector to make an additional temporary contribution, with the Bank Corporation Tax Surcharge increasing from 3 per cent to 6 per cent between January 2027 and March 2028.
But the Budget is also about where Britain goes next. Having made substantial progress towards clean power, the Government’s focus will now be on unleashing cheaper electricity across the economy, so that families in our city see the benefits in their bills and British companies can compete, invest and create good jobs.
That approach will form the foundation of the Government’s forthcoming 10 Year Plan for energy, putting affordability and competitiveness at its heart.
Where the Conservatives left Britain vulnerable to expensive energy, Labour’s ambition is clear: cheaper bills for Portsmouth’s families, cheaper power for British businesses, and an energy system capable of powering the reindustrialisation of Britain.
Stephen Morgan MP
