Russia have UK 'over a barrel' when it comes to gas supplies, says Shadow Chancellor Rachel Reeves

Former economist Ms Reeves said the UK is “uniquely” exposed to rising energy prices because the Government “got rid of the gas reserves, has dithered and delayed for over a decade on new nuclear and on new investment in renewables”.

The Government is coming under increasing pressure to act on soaring household energy bills, with experts predicting that bills could increase by as much as 50 per cent from April, meaning an extra £700 per year on the average family’s outgoings.

Speaking on Sky News yesterday morning, Ms Reeves said that the delays on new investment mean that “as a result, we are particularly exposed to imported gas from countries like Russia, who do have us over a barrel.

“That is why as well as the short-term action to keep prices down, we have got to retrofit homes, speed up that investment in new nuclear and renewables, and ensure that we are never in this position again.”

Prime Minister Boris Johnson has previously dismissed calls to scrap VAT from household energy bills, and his Cabinet is split over whether to stop a National Insurance hike.

However, Ms Reeves called on Ministers to get rid of the charges, adding: “If this isn’t the time to do it, then frankly I don’t know when is.”

She told Sky News: “The Prime Minister was the biggest advocate for cutting VAT on gas and electricity bills during the European referendum.

“But now when cutting those bills would make more difference than ever, the Prime Minister says no.

“Bills can’t be paid on broken promises.”