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Growing concerns as Treasury avoids questions on energy policy

June 27th 2012

The Treasury has been accused of interfering with the coalition’s green growth agenda, by MP’s who are investigating the impact of the Energy Bill. The news comes after the Chancellor froze a planned fuel duty rise yesterday.

There is now growing pressure on the Economic Secretary, Chloe Smith MP, as Treasury ministers refused to give evidence about their influence on low carbon subsidies. MPs on the Energy and Climate Change Committee had hoped Chloe Smith would appear at a hearing yesterday to answer critical questions regarding the levy-cap the Treasury has set for low-carbon subsidies. Smith did not attend, and said “it would be improper to comment on another department’s legislation”.

Tim Yeo, the chairman of the Energy and Climate Change Select Committee who had previously written to Smith requesting her attendance, has now written demanding written answers to 18 questions about the impact that Treasury decisions have on energy investment in the UK by the end of June.