The least expected – and most momentous – of what might be described as Jeremy Hunt’s “reverse” mini-Budget is the review of the energy price guarantee after April. When Liz Truss announced the scheme in her first days as prime minister, it was universally and warmly welcomed (albeit overshadowed by the death of the Queen).
It was, indeed, one of her few decisions that seemed both wise and compassionate. Given the scale of the cost of living crisis and spiralling energy bills, some scheme to keep people warm and businesses running may have been almost unavoidable, regardless of which party was in power. It was, though, with the measures previously announced by Rishi Sunak as chancellor, well targeted, and a great reassurance for families that were fearful for the future. It was to last for two years at least.
No longer. According to the new chancellor, it is going to be subjected to a “Treasury-led review”; an appropriately chilling-sounding exercise explicitly aimed at reducing the costs to the Exchequer. Mr Hunt, who has turned the situation around in remarkably short order, rightly points out that the existing scheme does leave the taxpayer with a virtually unlimited exposure to gas and electricity prices.
