LABOUR accused the Tories of stripping money out of the pockets of hard-pressed families today after they voted against a £1.6 billion boost to local economies.

The Conservatives voted down a Labour motion on Tuesday that would have helped businesses and high streets in struggling towns in northern England and the Midlands.

The proposals included a windfall tax on oil and gas producers that would have saved the average household around £200 while delivering targeted support for those who need it most and reducing energy bills by up to £600.

Labour accused the Tories of ignoring the crippling cost of living crisis, leaving working people with less money in their pockets and less money to spend on the local high street.

The latest Office for National Statistics (ONS) figures show that wholesale gas prices were around four times higher in January than in previous years, the largest price spikes since the summer of 2021.

Labour said consumer spending would be critical to driving economic recovery with household spending responsible for the “majority of our economic growth over the next few years.”

Shadow minister for levelling up Lisa Nandy said: “It is only by putting money back in people’s pockets that will start to see local economies thrive.

“The government have voted against plans that would put billions of pounds back in the pockets of the British public.

“It tells you everything you need to know about this government that they believe we should prioritise oil and gas producers who are making huge windfall profits, rather than the British people who face the true struggle to pay their energy bills.”