British consumers could face further price increases to their gas and electricity bills from next year as a new European Union energy tax comes into force.
The UK is trying to get an exemption from the EU's new carbon border tax (CBAM) on energy used to produce goods which will come into force from January 1, 2026.
But if ministers fail in their negotiations, British businesses will face a new tax on exports to the continent which are made through carbon-intensive methods.
Industry experts fear such a levy would increase consumer bills and impact exporters who may have to give the EU up to £800million in carbon tax payments each year.
The plan - dubbed a 'Brexit energy tax' by the i newspaper, which revealed the news - could also damage jobs and derail Chancellor Rachel Reeves's plans for growth.
