Rising Energy Prices Threaten UK Infrastructure Projects
As a row over woolly jumpers entangled Downing Street aides on Friday, senior industry figures have warned that the rising cost of living could leave government infrastructure investment plans in danger of unravelling.
Number 10 said on Friday that wearing a jumper during the cold months was “something people may wish to consider”, prompting accusations of callousness the day after British Gas said it would raise energy prices by 9 per cent.
The prime minister’s office later sought to row back on the comments, but industry experts warn that the political focus on soaring bills could have the “dangerous” effect of choking off investment in critical infrastructure across the UK.
As a result, some are questioning whether it will be possible to achieve the coalition’s £300bn target of investment in new infrastructure without growing public dissent about the cost of new projects.