Senior Tories have reportedly voiced concerns the party looks like it is being “dictated to” by Labour after the government U-turned on a windfall tax.
It comes as Labour’s shadow chancellor said that the government has “finally come to their senses” in adopting the tax on energy firms benefitting from bumper oil and gas profits.
One unnamed cabinet minister told The Times: “The politics of this is just so bad. We voted against it, we marched the whole party up the hill and are now taking them back down again. It looks like we’re being dictated to by Labour.”
Meanwhile, Rishi Sunak said his £1bn emergency cost of living package would have a “minimal” impact on inflation which will be “much less” than 1 per cent.
The chancellor argued that was the case because the help was “very targeted” at those who needed it most while money is being raised to pay for the measures.
Mr Sunak said second homes receiving a second £400 energy bill grant would only account for a small proportion of payments.