Keir Starmer rejects calls to nationalize energy firms after £29bn bailout

The Labor leader has rejected calls for the energy giants to be nationalized, after announcing a plan to pay them £29billion to fill the gap between skyrocketing wholesale prices and what they charge Brits

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Keir Starmer calls for 'credible plan' to deal with cost of living crisis

Keir Starmer sparked a backlash from parts of the left today by rejecting calls for the nationalization of big energy companies.

The Labor Party leader announced a £29billion plan to freeze bills at their current level of £1,971 a year over the winter, and refused to rule out further spending from April 2023.

The £29 billion would be given back to companies in the energy sector to make up the difference between the spike in wholesale prices and what they charge.

Yet Sir Keir rejected calls for the nationalization of big energy companies – long called for by many left-wing parties.

“Common ownership” of energy was one of 10 promises made by Keir Starmer during the Labor Party leadership campaign, which stated: “Public services must be in public hands, not make profits for the shareholders".

But he told BBC Breakfast: 'The choice we have made in our plan is that every penny needed for this plan will go directly to lowering bills for families across the country.

"If you go for nationalization, then money has to be spent to compensate the shareholders.

"And I think in an emergency like this, a national emergency where people are struggling to pay their bills, I think the right choice is for every penny to go towards lowering those bills."

UNISON General Secretary Christina McAnea said Labour's plans were "a positive start to tackling the cost of living crisis, cutting bills and controlling inflation".

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Keir Starmer meets people at the Park Life Heavitree community group cafe today in Exeter (

Picture:

Getty Images)

But Unite general secretary Sharon Graham said 'the sale of our energy business to private profiteers ended in tears' and 'a piecemeal approach will not.. .