Osborne offers energy compromise to Liberal Democrats

George Osborne has offered to drop his calls for deeper cuts in subsidies for onshore wind farms if his Liberal Democrat coalition partners compromise on "inflexible" green energy targets.

Amid coalition wrangling over the shift away from fossil fuels, the Chancellor urged Lib Dem Energy Secretary Ed Davey to retain a big role for natural gas rather than commit to the virtual decarbonisation of the electricity market by 2030.