Tories have demanded that Chancellor John Healey take an axe to green levies at the next budget instead of increasing welfare.

Warning against so-called bailouts for benefits street, Kemi Badenoch’s party are instead set to say that a carbon tax and more drilling would help families more.

Their demands come ahead of the first Budget by Andy Burnham’s new government, which is due this Wednesday.

The Treasury does not normally comment on financial matters ahead of the Budget.

Yet speaking to the Daily Express Tory grandees demanded VAT be removed from household energy bills as well as subsidies for nenewables thrown in the bin.

Andrew Bowie, Shadow Secretary of State for Energy Security, said: โ€œWorking families need lower energy bills. They were promised ยฃ300 off by Labour at the last election, but in reality they have risen by ยฃ367.

โ€œYet instead of taking the tough decisions needed to get costs down for everyone, John Healey is contemplating another bailout for Benefits Street, leaving hardworking families high and dry.

โ€œInstead, the Chancellor must act now to cut bills for everyone. And he should do that by adopting the Conservativesโ€™ Cheap Power plan without any more delay.โ€

Last week Mr Burnham’s government approved drilling in the Jackdaw gas field, welcoming the decisions as “pragmatic”.

But they drew criticism from the Conservatives for refusing to approve the Rosebank oil field with the Tories saying Labour was “dithering”.

Both areas are found in the North Sea and are rich in natural resources that supporters of drilling say could help shore up Britain’s energy security.

Now Tory MPs are demanding the Chancellor and Mr Burnham stand up to their backbenchers and approve more extraction in the region.

Decisions on new extraction are subject to a complex approvals process and the Energy Secretary has the final say.

Responding to the Conservative Partyโ€™s release ahead of the Budget, a Labour Party spokesperson said: “The Tories had 14 years to make Britain more energy secure. Instead, they left us exposed to international shocks and families are paying the price through their bills.

“Andy Burnhamโ€™s Labour Government is acting now to give people breathing space, including by removing VAT on electricity bills. Weโ€™ve given the green light to the Jackdaw gas field, helping protect hundreds of jobs and keep millions of homes warm this winter, while investing in clean, home-grown energy to reduce our exposure to global shocks and help bring bills down for good.”