Two days after receiving the keys to Downing Street, Liz Truss will present a huge relief package for homes and businesses in the face of inflation and skyrocketing energy prices on Thursday.
Liz Truss should announce in Parliament in the morning the freezing of energy bills in Great Britain and measures that in total should cost about 100,000 million pounds according to the British press. Astronomical amounts that rival the scale of the measures taken during the pandemic.
The new Prime Minister, a conservative with Thatcherite tendencies, should at the same time confirm tax cuts to stimulate an economy destined for recession at the end of the year.
“I will take immediate action to help people with their energy bills, but I also want us to secure our energy supply,” he said in his first parliamentary question session on Wednesday.
“Medium-term monetary stability and fiscal discipline”
The ceiling of the energy bill of individuals should theoretically increase by 80% on October 1. It has doubled in a year and, if nothing is done, is expected to rise again next year to around £5,000 a year for the average household, according to estimates, fueling double-digit inflation that is accelerating.
The UK is heavily dependent on gas prices, which have increased sevenfold in a year, in particular due to supply strains since the start of the war in Ukraine.
But the cocktail of massive direct aid and tax cuts scares the markets, which fear a new serious slide in public finances after the pandemic. In a sign of investor distrust, Britain’s 10-year Treasuries rose more than 3% on Tuesday, the highest level in a decade.
The new Finance Minister, Kwasi Kwarteng, however, assured this Wednesday that although an increase in public debt was “necessary in the short term”, the new Government aimed at “monetary stability and budgetary discipline in the medium term” thanks to the increase. .of the economy that would be faster than that of the public debt.
But who will pay? Without targeted tax increases, this massive relief package will get taxpayers through the winter, but they’ll have to pay for it afterward for years, Labor insisted.
Infrastructure administrators, energy companies and environmentalists also denounce the apparent lack of energy saving measures by Liz Truss. They are urgently calling for policies to insulate UK buildings, for many real thermal sieves.
Source: BFM TV
