Chancellor pours cold water on hopes of more energy support this winter despite families facing huge spike in bills

Chancellor John Healey said the Government would not add to the energy support already announced for this winter, despite a forecast rise in household bills. He argued that public finances cannot shield families from every cost-of-living pressure and identified a settlement to the Middle East conflict as the biggest potential help for the UK economy.

The Budget included a £100 payment for 20 million households in council tax bands A to D and an extension of a 5 per cent VAT cut on electricity costs. The energy price cap is forecast to rise by a quarter in January, adding more than £400 to a typical household’s bill. Disruption to the Strait of Hormuz, which usually carries around a fifth of the world’s oil and gas, has contributed to uncertainty over energy prices.