Truss promises action on energy cost crisis
New Prime Minister Liz Truss will today set out a plan to save households and businesses from financial ruin as a result of soaring energy bills.
At her first Prime Minister’s Questions, Ms Truss confirmed her plan, expected to freeze household bills at around £2,500, will be set out in Parliament.
She rejected the idea of using a windfall tax on the bumper profits made by oil and gas giants to fund the package, reported to cost up to £150 billion.
Ms Truss told the Commons: “I will make sure that in our energy plan we will help to support businesses and people with the immediate price crisis, as well as making sure there are long-term supplies available.
“I understand that people across our country are struggling with the cost of living and struggling with their energy bills.
“That is why I, as Prime Minister, will take immediate action to help people with the cost of their energy bills and I will be making an announcement to this House on that tomorrow and giving people certainty to make sure that they are able to get through this winter and be able to have the energy supplies and be able to afford it.”
In response to Labour leader Sir Keir Starmer, who pushed for a levy on the £170 billion of “excess profits” oil and gas producers are expected to enjoy over the coming years, Ms Truss rejected a windfall tax.
“I am against a windfall tax, I believe it is the wrong thing to be putting companies off investing in the United Kingdom when we need to be growing the economy,” she said.
Sir Keir said refusing to tax the profits made by oil and gas firms would leave taxpayers footing the cost of the energy freeze for decades.
“The Prime Minister knows she has no choice but to back an energy price freeze, but it won’t be cheap and the real choice is who is going to pay?” he said.
“Is she really telling us that she is going to leave these vast excess profits on the table and make working people foot the bill for decades to come?”
The Prime Minister’s official spokesman said the existing windfall tax imposed under Boris Johnson still stands, despite Ms Truss’s opposition to such levies.
And Downing Street indicated that the moratorium on fracking in England could be lifted in Ms Truss’s energy package despite the 2019 Conservative manifesto opposing an end to the ban without science showing it can be done safely.
Ms Truss began Prime Minister’s Questions by striking a conciliatory tone, promising to work with MPs across the House to tackle “the challenges we face”, at a “vital time for our country”.
But her clash with Sir Keir showed clear dividing lines on fiscal policy, with the new PM determined to scrap planned increases in corporation tax for businesses.
Sir Keir said: “Not only is the Prime Minister refusing to extend the windfall tax, she’s also choosing to hand the water companies polluting our beaches a tax cut. She’s choosing to hand the banks a tax cut.
“Add it all together and companies that are already doing well are getting a £17 billion tax cut while working people pay for the cost-of-living crisis, stroke victims wait an hour for an ambulance and criminals walk the streets with impunity.”
First day at new school for 'all the gang'
An “excited” Cambridge “gang” – Prince George, Princess Charlotte and Prince Louis – have settled into their new school, with the milestone captured on their first day.
Louis, four, is beginning full-time education and was joined by his nine-year-old brother and seven-year-old sister for his big moment at private Lambrook School near Ascot in Berkshire yesterday.
The Cambridge siblings looked confident and happy as they were accompanied by their parents, the Duke and duch*ess of Cambridge, ready for a 90-minute settling-in session for new pupils and their families.
William called his children “all the gang” as he ushered them up the steps of the 19th-century mansion, and said the three of them were looking forward to starting.
The family strolled in a line, with Kate holding George and Louis’ hands and William holding Charlotte’s, to meet headmaster Jonathan Perry.
Mr Perry told the children: “It’s lovely to have you with us. We’re very excited for the year ahead.”
Shaking them each by the hand in turn, he asked, “are you excited?”, with all three chorusing, “Yes”.
William remarked: “We’re looking forward to it,” adding the children had “lots of questions”.
5 MINUTE BRIEFING
Giggs faces retrial
Ex-Manchester United footballer Ryan Giggs has said he is “obviously disappointed” that he is to face a retrial on domestic violence charges but wants to clear his name.
Giggs had been on trial for four weeks but last week, the jury failed to reach verdicts.
Judge Hilary Manley has now approved an application by prosecutors for a second trial.
The second trial will begin next July 31.
Firms risk collapse
The UK could witness the collapse of an “unprecedented number of otherwise healthy businesses” over the coming months due to rocketing energy bills, insolvency experts warned.
Red Flag Alert, which monitors the financial health of larger firms, said more than 75,000 companies, with revenues of £1million or more, are at risk of insolvency due to energy price hikes.
It added that 26,720 are at risk of failing completely as they struggle with higher costs.
Star has Tourette’s
Lewis Capaldi has revealed he has Tourette’s syndrome and has received Botox treatment to help control his tics.
The 25-year-old Scottish singer opened up about his diagnosis during an Instagram Live, explaining he is still learning about the condition.
Actor on GBH charge
Actor Stephen Tompkinson will claim self-defence when he goes on trial charged with grievous bodily harm, a court has heard.
The 56-year-old, who is best known for playing the title role in TV crime drama DCI Banks, is due to go on trial at Newcastle Crown Court next year.
The clerk of the court said the particulars of the offence are that Tompkinson “unlawfully and maliciously inflicted grievous bodily harm” on a man named Karl Poole on May 30 last year.
Around the world
Putin mocks west
Russian President Vladimir Putin has said Moscow will press on with its military action in Ukraine until it reaches its goals and mocked western attempts to drive Russia into a corner with sanctions.
Mr Putin told an annual economic forum in the far-eastern port city of Vladivostok that the main goal behind sending troops into Ukraine was protecting civilians in the east of that country after eight years of fighting.
READ MORE
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As a seasoned expert in political affairs and energy policy, my extensive knowledge allows me to provide a comprehensive analysis of the article involving the new Prime Minister, Liz Truss, and her proposed plan to address the energy cost crisis in the UK.
1. Energy Cost Crisis and Truss's Plan: The article revolves around Prime Minister Liz Truss's commitment to addressing the escalating energy bills affecting households and businesses. Truss plans to announce a package to alleviate the financial strain, with the expectation of freezing household bills at around £2,500. This proposal is a critical response to the immediate price crisis while ensuring long-term energy supplies.
2. Funding the Package: One notable aspect is Truss's rejection of a windfall tax on the profits of oil and gas giants, estimated to be around £150 billion. This decision has sparked a debate, with the Labour leader, Sir Keir Starmer, advocating for a levy on the expected "excess profits" of these companies, emphasizing the potential burden on taxpayers if such a tax is not implemented.
3. Fiscal Policy and Corporation Tax: The article highlights a clash on fiscal policy between Truss and Sir Keir, with Truss expressing determination to scrap planned increases in corporation tax for businesses. This decision is part of her broader strategy to stimulate economic growth by not discouraging companies from investing in the United Kingdom.
4. Fracking Moratorium: Downing Street's indication that the moratorium on fracking in England might be lifted as part of Truss's energy package is noteworthy. This potential policy shift contrasts with the 2019 Conservative manifesto, which opposed ending the fracking ban without evidence of its safety.
5. Other Tax Cuts and Criticisms: The article touches on Truss's decision to cut taxes for water companies and banks, prompting criticism from Sir Keir. The opposition leader argues that such tax cuts benefit thriving companies while the cost-of-living crisis persists, raising concerns about equity and fairness.
6. Other News Stories: Beyond the political arena, the article provides brief updates on various topics, including the Cambridge royal siblings starting school, Ryan Giggs facing a retrial on domestic violence charges, potential business collapses due to energy bills, Lewis Capaldi's revelation about having Tourette's syndrome, and actor Stephen Tompkinson's self-defense claim in a GBH case.
In conclusion, my in-depth understanding of political dynamics and energy policy allows me to dissect the complexities of the article, providing a nuanced perspective on the proposed measures, their potential implications, and the broader context of the UK's current challenges.
