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Govt considers Northern Rock-type bail-out for energy firms – but without the strings attached

Yet again, Tories plan to privatise profits and nationalise losses – and only backbench Labour MPs demand different against backdrop of massive price hikes to public

The Tories are considering huge bail-outs for failing energy companies – as prices to the UK public soar – in a move reminiscent of the enormous bail-out to failing bank Northern Rock.

But while in 2008 Northern Rock was taken into public ownership in return for public funds, Rishi Sunak and Business Secretary Kwasi Kwarteng appear to be avoiding any such strings attached to the deal – yet so far, Labour leader Keir Starmer has been silent on the issue, with nothing on his social media feed, nor any Google hits for a search for any kind of recent comment on the issue.

Nothing for more than a month from Keir Starmer on energy

In stark contrast, Labour back-benchers such as Jon Trickett are calling for energy – without question a strategic resource – to be brought immediately back into public ownership:

The idea is a popular one, too, with thousands of shares and likes – as it has been since the early days of Jeremy Corbyn’s leadership of the Labour party, along with a host of other left policies to give the public direct ownership of industries that have gouged them on price ever since privatisation.

The strategic nature of energy as a resource is indisputable – and underlined yet again by the fact that the government is already making plans for energy shortfalls and outages this winter, as supply is already under strain even before the cold weather sets in. Andrew Large of the Energy Intensive Users Group said:

It is potentially catastrophic. We’re already seeing plant closures at a time of year when the weather is still warm and domestic heating is low. Fast forward two months and this could be an acute crisis.

If only there was an opposition on the front benches. Instead, Keir Starmer looks set to allow Boris Johnson to funnel more billions of easy public cash into private pockets – or else to u-turn and outflank him on the left yet again by changing tack and imposing direct government control.

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