Treasury officials accuse Boris Johnson of “economic illiteracy” on his ecological plans – .

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Treasury officials accuse Boris Johnson of “economic illiteracy” on his ecological plans – .


Treasury officials have accused Boris Johnson of “economic illiteracy” as tensions rise within government over the growing cost of the Prime Minister’s spending pledges – minds unraveling in particular over the bill for new green policies.

Chancellor Rishi Sunak has become increasingly concerned that the inflationary pressures building up in the economy could force the Bank of England to raise interest rates – raising government bills as much as those of the ordinary households.

A perfect storm of soaring energy prices, the end of the holiday support scheme and public spending plans could push inflation beyond the 4% peak previously forecast this year, leaving the Bank has no choice but to raise interest rates from the current record level. 0.1 percent.

Mr Sunak fears a rate hike as it would cause a sharp increase in the £ 9 billion the Treasury pays in interest on its loans each month.

But he had to hush up his objections to avoid No 10’s accusations of disloyalty. Combined with the billions of pounds the Prime Minister plans to spend on infrastructure projects and green policies, some Treasury officials fear Britain will see its credit rating in international markets deteriorate.

Treasury officials have accused Boris Johnson of “economic illiteracy” as tensions rise within government over the rising cost of Prime Minister’s spending promises – minds unraveling especially over the bill for new green policies

A source said the UK could “become the Venezuela of Europe” – a reference to the South American country’s struggle to pay off a mountain of foreign debt.

The source told the Mail on Sunday: “The Treasury Mandarins believe Boris can only think short term and is indeed economically illiterate. “

However, other government sources said last night that the UK’s borrowing position is expected to improve over the coming year.

The Chancellor will present a budget and spending review on October 27.

It was reported yesterday by the Financial Times that Mr. Sunak was using “stale” economic figures to paint a deliberately pessimistic picture of the outlook for the economy so that he could ease spending demands from departments, thus allowing himself to announce a better-than-expected improvement in its 2022 budget.

Downing Street is keen to show the progress of its green agenda ahead of next month’s COP26 climate summit in Glasgow.

To achieve the plan to cut carbon dioxide emissions by 78% by 2035 – and completely decarbonize the economy by 2050 – the installation of new gas boilers will be banned from 2035, families likely being offered grants of £ 5,000 to buy heat pumps for their homes as part of the Prime Minister’s long-awaited heating and buildings strategy.

But the cost of the pumps far exceeds the price of £ 1,500 to £ 3,500 for gas boilers.

Mr Sunak was horrified by the calculations of the independent Office for Budget Responsibility (OBR), which put the cost of all buildings in the country net zero for carbon emissions at £ 400 billion.

Mr Sunak was horrified by calculations by the independent Office for Budget Responsibility (OBR), putting the cost of net zeroing all buildings across the country for carbon emissions at £ 400bn.

The strategies were devised by Business Secretary Kwasi Kwarteng, who clashed with Mr things in place. ‘

A source from the Treasury said last night: “The Chancellor and the Prime Minister are united in their ambitions to ensure that the promises we made in 2019 are kept.

And with departmental budgets increasing to record levels relative to Parliament, their track record speaks for itself.

How we are increasingly – and so expensive – dependent on gas

Ministers are desperate to reduce Britain’s dependence on gas, as soaring wholesale prices have skyrocketed household and business energy bills, writes Harriet Dennys.

An analysis of the UK’s energy supply shows that gas is responsible for around 40% of the overall mix.

Wind power provided almost a fifth of our electricity last month, but its contribution fluctuates throughout the year. It peaked at 26% in February.

Our electricity comes from several other sources: nuclear, hydraulic, biomass, imports and sun. But the amounts vary widely depending on the season, weather and time of day.

Solar power peaks in June, providing an average of 7% of our needs, but was only 0.6% last December. Last week, the sun supplied 3.5% of the UK’s energy.

As gas prices skyrocketed last month, old coal-fired power plants had to be commissioned to meet electricity needs. Coal, which ministers want to phase out, contributed 2% of our electricity mix in September, against 0.5% a year earlier.

Imports increased from 7% to 10% over the same period, and hydroelectric power doubled to 1%.

Britain’s excessive dependence on gas is due to the fact that 85% of homes need it for heating. More than half of our gas is imported – it comes from Russia, Norway, the Netherlands and Belgium via pipelines.

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