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Cameron ‘urged’ to settle Davey-Osborne row

The chancellor and the energy secretary’s differences threaten to derail planned reforms to the UK’s energy sector, it has been claimed.

According to The Guardian, David Cameron has been urged to intervene in a rapidly escalating row between George Osborne and the Ed Davey that threatens to derail planned reforms to the UK’s energy sector.

Mr Osborne has demanded that the Liberal Democrats accept a watering down of green targets as the price for sparing the onshore wind industry from swingeing subsidy cuts.

But the concession that the chancellor is offering is worth only a few million pounds a year to one part of the renewable energy industry, while his attempts to scrap key green goals could jeopardise tens of billions in investment and the creation of thousands of new green jobs, green businesses and campaigners have warned.

In a letter to Mr Davey, Mr Osborne offered to allow subsidies for onshore wind to be cut by only one-tenth, rather than by a quarter as the Treasury had previously demanded. But in return, he demanded that 2030 targets for carbon emissions and renewable energy be scrapped.

The government’s climate advisers, the Committee on Climate Change, and the green energy industry regard these targets as vital to stimulate the investment needed to move the UK towards a green economy.