Subsidy plan stalls amid coalition row

Yorkshire businesses and MPs have hit out after the Government was forced to delay its long-awaited decision over subsidies for green energy projects due to bitter in-fighting between Conservatives and Lib Dems.

By The Newsroom

Published 18th Jul 2012, 07:00 BST

Labour attacked the “ridiculous” decision to delay the announcement over the Government’s Renewables Obligations subsidy system for schemes including onshore and offshore wind farms.

The Treasury wants the subsidies made available to wind farms cut dramatically but Lib Dem Ministers led by Energy Secretary Ed Davey are standing firm.

Mr Davey said a decision will be made before October.

But Labour’s Shadow Energy Secretary Caroline Flint warned that local businesses “are crying out for certainty” and called on Ministers to “stop dithering”.

Charlie Spencer, chief executive of Hull-based engineers Spencer Group, said his £100m Energy Works project will be delayed.

“This will have a knock-on effect across the region,” he added.