After weeks of an often ill-tempered and divisive party leadership contest that pitted Truss against Rishi Sunak, a former finance minister, the announcement sparks the start of a handover from Boris Johnson. He was forced to announce his resignation in July after months of scandal and will travel to Scotland to meet Queen Elizabeth on Tuesday to formally tender his resignation. His successor will follow him and be asked to form a government. Truss, long the front-runner in the race to replace Johnson, will become the fourth Conservative prime minister since the 2015 election. the soaring inflation that reached 10.1% in July. Boris Johnson’s foreign secretary, Truss, 47, vowed to act quickly to tackle Britain’s cost of living crisis, saying within a week she would draw up a plan to tackle rising energy bills and secure future fuel supplies. “I will deliver a bold plan to cut taxes and grow our economy. I will tackle the energy crisis by tackling people’s energy bills, but also by tackling the long-term issues we have in energy supply,” he told members. party in London after winning the leadership. Speaking in a television interview on Sunday, he declined to elaborate on the measures he says will reassure millions of people who fear they will not be able to pay their fuel bills as winter approaches. She declined to comment on a report that her energy plan could exceed 100 billion pounds ($151 billion Cdn), but the lawmaker supposed to be her finance minister, Business Minister Kwasi Kwarteng, wrote on Monday that the government would could afford to borrow more to finance household and business support.
Worry about tax cuts could fuel inflation
Truss had signaled during her leadership campaign that she would challenge the convention by scrapping tax increases and cutting other contributions that some economists say would fuel inflation. That, along with a pledge to review the Bank of England’s mandate while protecting its independence, prompted some investors to dump the pound and government bonds. The Institute for Fiscal Studies last month questioned whether Britain’s next prime minister has room to make big, permanent tax cuts.
“2nd most difficult post-war brief”
Truss faces a long, expensive and difficult backlog that opposition lawmakers say is the result of 12 years of poor Conservative government. Several have called for an early election — something Truss said she won’t allow. Veteran Conservative lawmaker David Davis described the challenges he would face as prime minister as “probably the second most difficult short tenure of any post-war prime minister” after Conservative Margaret Thatcher in 1979. Boris Johnson will tender his resignation as Prime Minister to Queen Elizabeth II on Tuesday at Balmoral Castle in Scotland. The Queen will then appoint Liz Truss as his successor. (Henry Nicholls/Reuters) “I really don’t think any of the candidates, not even one of those who have passed, really knows how big this is going to be,” he said, noting the cost could run into tens of billions of pounds. Truss said she would appoint a strong cabinet, rejecting what one source close to her called “presidential-style” governance, and would have to work hard to win over some MPs in her party who had supported Sunak in the race. . The Institute for Government said Truss would have a weaker starting point than any of her predecessors because she was not the most popular choice among lawmakers in her party.
The highest utility bills arrive in winter
First, it will turn to the pressing issue of rising energy prices. Average annual household utility bills are expected to rise by 80% in October to £3,549, before an expected rise to £6,000 in 2023, decimating personal finances. Britain is lagging behind other major European countries in its bid to support energy bills, which opposition lawmakers blame on a “zombie” government unable to act while the Conservatives were in charge. WATCHES | UK energy bills to rise by 80% in October:
UK energy bills to rise by 80% in October
UK energy bills are set to jump by 80% in October as Ofgem, the government’s energy regulator, raises the cap on consumer prices. In May, the government set out a £15bn support package to help households with energy bills as part of its £37bn cost of living support programme. Italy has budgeted more than €52 billion (Cdn$68 billion) so far this year to help its people. In France, increases in electricity bills are capped at 4% and Germany said on Sunday it would spend at least 65 billion euros to protect consumers and businesses from rising inflation.
