The UK sleepwalked into this energy price shock | Nils Pratley

Many of the decisions predate this government but the notion that Britain was better prepared for this crisis is fanciful

“Because of the choices we made before the conflict in the Middle East began, we are better prepared for a more volatile world”, claimed the chief secretary to the Treasury, James Murray, last week. That statement – surprise, surprise – failed to calm the bond vigilantes who had pushed the yield on 10-year government debt to a punishing 5% before Monday’s modest retreat.

Murray seemed to be referring to tax increases and the chancellor’s decision to shift £150 of green levies from energy bills into general taxation. Count those if you wish but, come on, they are minor entries. The UK’s vulnerability to energy price shocks flows from bigger forces, such as our large and growing dependency on imports.