George Osborne is blocking a new subsidy regime for renewable energy, as he fights a coalition battle with the Liberal Democrats to ensure gas remains central to Britain's future power needs.

The chancellor fears overgenerous support for wind power and other renewable sources will deter investment in gas-fired power stations, which he believes offer businesses and consumers the prospect of lower bills in future.

The stand-off between Mr Osborne and Ed Davey, the Lib Dem energy secretary who wants to prioritise renewables, has infuriated business. John Cridland, head of the CBI employers' group, claims the "political... [continue via Web link]