Liz Truss, who is likely to become the new Prime Minister of the United Kingdom, plans to come up with a £100 billion bailout package to help households with soaring energy prices and high inflation. This was reported by the British newspaper Daily Mail.
According to the newspaper, Truss wants to freeze energy prices, among other things.
Truss is expected to be named as Boris Johnson’s successor by the Conservative Party on Monday afternoon, and the Secretary of State will then take over the position of Prime Minister on Tuesday. Truss was in a race with Finance Minister Rishi Sunak for the premiership. The 47-year-old Truss would then become the third female Prime Minister of the United Kingdom, after her party colleagues Margaret Thatcher and Theresa May.
Truss has previously said he will devise a plan within a week of her appointment to tackle Britain’s high energy costs and improve energy supplies. For example, it wants to extract more oil and gas in the North Sea and generate more sustainable nuclear energy. She has also said she will cut taxes to stimulate the economy.
The UK economy could be plunged into recession due to the headwinds of high inflation, which puts a lot of pressure on household purchasing power. In the United Kingdom, there have been recent strikes by, for example, postmen, dockers, and railway workers to demand substantial wage increases against the “cost of living crisis,” as the British call the inflation crisis.
Kwasi Kwarteng, who is likely to become Chancellor of the Exchequer under Truss, has already said the UK would be responsible for borrowing money from the capital markets to fund aid packages. He says it is the “right choice” to help households get through the winter. Kwarteng was Secretary of the Economy under Johnson.
Pressure on London to do more against the energy crisis increased further on Monday as Russia extended its shutdown of the important Nord Stream 1 gas pipeline to Germany. As a result, the European gas price shot up sharply.