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Campaigners and unions demand nationalisation of energy firms

Sir Keir Starmer rejected calls for public ownership of key utilities despite soaring energy prices

PEOPLE must be put before profit, Labour’s left demanded today, after Sir Keir Starmer again rejected calls for public ownership of key utilities despite soaring energy prices.

The Labour leader dismissed such a move, overwhelmingly endorsed by party members at last year’s Labour conference, as he unveiled a plan to stop gas and electricity bills rising this winter. 

Labour’s £29 billion proposal, partly paid for by expanding a windfall tax on the British profits of oil and gas companies, would address the “national emergency” by funding a freeze in the energy price cap at its current level of £1,971 for six months from October, he said.

The intervention, which comes after market analysts warned that regulator Ofgem could soon allow energy firms to charge the average household more than £5,000 a year to keep the lights on amid sky-rocketing wholesale costs, was welcomed by former party chairman Ian Lavery.

But the Wansbeck MP told the Morning Star: “If it will cost us billions to get through the next few months, surely we should take the opportunity to bring this utility into public ownership.

“You can’t control what you don’t own.

“Enough is enough: it’s time to put people ahead of profit.”

Sir Keir insisted his focus on scrapping further increases to the energy price cap, now set to be updated every three months, would limit runaway inflation, seeing it peak at about 9 per cent rather than the crippling 13.3 per cent forecast by the Bank of England.

He said his plan would be funded by closing a loophole in the levy on the profits of energy companies announced by former chancellor and prime minister hopeful Rishi Sunak in May and backdating the scheme’s start to January, which, together with rising global prices, would bring in £8bn, he claimed.

Some £14bn would come from dropping the government’s £400-per-household energy rebate and abandoning pledges to cut green levies or VAT on domestic fuel bills made by Tory leadership hopefuls Liz Truss and Mr Sunak respectively. 

Sir Keir, who stressed he is also committed to a national housing insulation programme and boosting the country’s renewable energy capacity, said: “We’ve had 12 years of Tory government that has failed to prepare and refused to invest, leaving bills higher and our country less secure.

“This is a national emergency: it needs strong leadership and urgent action.”

Unison general secretary Christina McAnea welcomed Sir Keir’s proposals as in “stark contrast to the government’s inertia.”

Downing Street has ruled out any new announcements on further help for struggling families until after a new prime minister is in place next month. 

His “zombie government” was slammed by Usdaw union head Paddy Lillis, who argued Sir Keir’s plan shows the “clear and positive difference that a Labour government can make.”

But Unite leader Sharon Graham said Labour’s offer — while an improvement on its previous position — was “piecemeal.

“Selling off our energy sector to the private profiteers has ended in tears,” she said. 

“Only days ago BP announced that in April to June this year it had made almost £7 billion profits. On the same day it was being openly contemplated that household energy bills in the UK could rise to £3,600 a year.

“These figures prove that the British economy does not work for workers and their families. Britain’s real crisis isn’t rising prices – it’s an epidemic of unfettered profiteering,” she charged, pointing out that firms like Scottish Power – owned by Spain’s Ibedrola – and France’s state-owned EDF were raking in profit from British customers.

The union leader called for a return to public ownership, which is also backed by the TUC.

The move would be supported by most people, according to a We Own It poll published today, though Sir Keir claimed it would be too expensive as it would involve “compensating shareholders.”

We Own It director Cat Hobbs told the Morning Star that creating a nationalised energy sector is a "complex" process that does not necessarily involve compensating shareholders.

She added: "There's no reason why we have to run our energy system around a handful of shareholders, we could actually run it for people in this country and copy what is best practice and totally normal in other countries, such as France and Norway."

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