Cost of living: are Tories playing on Labour’s pitch?

The Treasury appears to be dropping heavy hints that energy bills will be cut back by £75 thanks to David Cameron’s “rolling back” of green levies. Some in government are a bit surprised to see an exact number being put next to that reduction given that the quad has had only one whole meeting on energy prices and a section of an earlier one, given also that the autumn statement when all this gets announced isn’t until 4th December.

But the fact that the £75 cut is being trailed from George Osborne’s end of government suggests it (being in the driving seat) will make darn sure that £75 is the absolute minimum cut from bills.

It can do that because Nick Clegg has signalled that he is willing to see the ECO commitments taken off bills as long as they are honoured or made good from central taxation. He’s not willing to dump the ROCs subsidising alternative energy sources (around £30 on average bills). Average government levies on energy bills tally up to £112.

Across Westminster today I found quite a few coalition voices sighing that the government was yet again getting stuck into a week in which it appears to be dancing to Ed Miliband’s tune. After the Labour leader’s conference speech unveiling a 20 month freeze of energy prices, the Tories originally said they wouldn’t get sucked into that kind of debate.

His prize freeze policy, the Tories said again and again, was a “con.” But day after day, the coalition, driven by the Tory high command, is announcing help for the cost of living crisis. Nick Clegg, I understand, in private has told the prime minister that he is “playing” on Labour’s “pitch”.

And there were more sighs from across government today after headlines and briefings about an upcoming announcement on help on water bills. The actual announcement, various voices warn, won’t be anything like the advance billing (if you see what I mean).

George Osborne already has a tidy bill to pay in his autumn statement after the party conference spending spree which included married person’s tax allowance (for the Tory conference) and free school meals for early years primary school pupils (for the Lib Dem conference). Scrapping the ECO levies and paying for them some other way adds to the autumn statement workload.

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