Liz Truss vows ‘decisive action’ on soaring energy bills – but does not commit to extra payments
Tory frontrunner acknowledges the strain is ‘clear’
Liz Truss has pledged “immediate support” to ease the sting of spirally energy bills as the Tory leadership contest enters its final stretch.
But Truss – who has previously insisted that she was focused on slashing taxes, rather than “giving out handouts” – has not yet committed to any extra direct payments.
It comes as Ofgem has confirmed an 80 per cent rise in the energy price cap – sending the average household’s yearly bill from £1,971 to £3,549 from October.
Jonathan Brearley, chief executive of Ofgem, said the next prime minister “will need to act further” on support for households.
Writing in the Daily Mail, the foreign secretary has promised “decisive action” to deliver “immediate support”.
But Truss then repeated her pledges to cut taxes, including by reversing the national insurance hike, and slash green levies on energy bills.
And the foreign secretary argued it was not “right” to announce the full plan before the contest is over or she has seen all the analysis being prepared in Whitehall.
However, Truss and business secretary Kwasi Kwarteng – tipped to be her chancellor is she wins – have discussed new options such as suspending VAT from energy bills and using Universal Credit to boost support for vulnerable households, according to The Times.
The final two in the race for No 10 have repeatedly come to blows over their economic policies, with Rishi Sunak warning that refusing to offer extra payments would be a “moral failure”, he said.
In a recent change of tact, Ms Truss has previously signalled she could help firms and households with soaring energy bills with direct support this winter.
She said she was looking at assistance “across the board”, despite in the past insisting she was focused on slashing taxes, rather than what she termed “giving out handouts”.
On Thursday Ms Truss wrote: “The impact on our cost of living is clear at the supermarket checkout, at the petrol pump and on our latest energy bills.
“I know how hard it is for millions of Britons, and how grave concerns are about the consequences of today’s decision by Ofgem on the next energy price cap. The rest of Europe is facing the same challenge, which will loom large as winter sets in.
“If I am elected leader of the Conservative Party and prime minister, I will take decisive action on entering No 10 to provide immediate support, but will also tackle the root causes of these issues so we are never again in this difficult position.
“To those of you feeling the squeeze, my message is clear: I will ensure support is on its way and we get through these tough times.”
The Telegraph reported that chancellor Nadhim Zahawi is set to say measures to ease the burden will be announced as soon as possible after the winner of the Tory leadership contest is revealed in September.
The newspaper cited a Treasury source as saying Mr Zahawi has been “working flat out to develop options for further support” so that Boris Johnson’s successor “can hit the ground running”.
It appeared early on Friday that no Government minister had been put forward to speak to broadcasters about the expected rise in the price cap.
At Thursday’s hustings, Mr Sunak said he would back his rival for prime minister over Mr Johnson, while Ms Truss shunned the former chancellor in favour of her outgoing boss.
The pair faced questions on a range of topics including spiralling energy bills, crime and Net Zero before an audience of Tory party members, while Ms Truss caused a stir by saying the “jury’s out” on whether French president Emmanuel Macron is “friend or foe” to the UK.
She added that if she was prime minister she would judge him on “deeds, not words”. In answer to the same question, Mr Sunak described Mr Macron as a “friend”.
Mr Sunak also said he would prefer to “take the stairs” than be stuck in a lift with either Sir Keir Starmer or Nicola Sturgeon.
But Ms Truss said she would pick Scotland’s First Minister in that scenario, as the idea of being trapped with the Labour leader was “extremely boring”.
Elsewhere, Mr Sunak took aim at “wokeish ideology”, pledging to tackle “lefty woke culture” and never let “political correctness” get in the way of people’s safety.
Asked if the BBC has a Tory or Labour bias, or if it is neutral, he said: “There’s no woke bias option in there.”
Ms Truss said anyone who believes the BBC is impartial is “kidding” themselves, adding that she prefers “honest bias” to the pretence of neutrality.
Earlier on Thursday, Mr Sunak said he would vote for the tax-cutting plans put forward by Ms Truss, despite previously branding them a “moral failure”.
The former chancellor has used the contest to fiercely criticise his rival’s economic strategy, but appeared to relent by admitting that if defeated he would back an emergency budget put forward by Ms Truss.
As the Tory leadership contest enters its final stages, calls are growing for urgent Government action to support households through what is predicted to be a difficult winter.
Supply issues linked to Russia’s invasion of Ukraine are one reason behind rapidly rising power bills – with recent warnings suggesting the average amount UK households pay for their gas and electricity could reach £6,000 next year.
Labour has called on both Tory leadership candidates to expand the windfall tax on oil and gas companies if they become prime minister.
But Ms Truss said in her piece for the Daily Mail that this approach risks “deterring investors and slowing our pursuit of energy independence”.
At the Norwich hustings, Mr Sunak said he would also look at further support for businesses hit with soaring energy costs.
Asked what help he would give them, the former chancellor said: “That’s clearly something that the new prime minister will have to look at. I’ll have to look at it and I’m happy to do so and would do so.”