RT.com
06 Aug 2022, 15:43 GMT+10
Liz Truss promised economic reform to help people with soaring fuel and food prices
Britain is facing a "tough winter" amid growing fuel and food prices, PM candidate Liz Truss admitted on Friday, adding that "business as usual policies aren't working" and thus special measures should be taken to prevent a recession.
In an interview with Sky News, the Tory leadership hopeful touched on the burgeoning energy crisis, which has been exacerbated by anti-Russia sanctions and a decrease in Russian natural gas supplies to Europe. While the UK is not dependent directly on Moscow for fuel, it is still suffering from growing energy prices and rising living costs.
"I know it's going to be a tough winter, I want to do all I can to make sure we are releasing the reserves in the North Sea of gas," said Truss, who currently serves as foreign secretary.
The energy and cost-of-living crisis in the UK continues to intensify, with annual household bills expected to surpass Pound 3,300 ($3,971) this winter, according to energy consultant Cornwall Insight. As many as six million British households could be subjected to power cuts this winter if Russian gas supplies to Europe stop, The Times reported Sunday, citing a Whitehall document.
When it comes to helping Brits with fuel bills, Truss pledged to impose a temporary moratorium on the green energy levy.
"Business as usual policies aren't working, we need to do more and that's why I am determined to reform the economy and to keep taxes low," Truss, who earlier pledged Pound 30 billion in tax cuts, explained.
Among other priorities, she discussed lowering the cost of national insurance which, in her opinion, would "put more money in people's pockets."
Truss's competitor, former UK Chancellor Rishi Sunak, has been criticizing her fiscal approach. He claims that the proposed tax cuts could lead to inflation becoming entrenched, which would "be incredibly damaging for millions across the UK."
The winner of the leadership race will be announced on September 5, after a postal vote of around 150,000 Tory party members.
Meanwhile, the upcoming winter is a matter of deep concern for EU officials, too. Earlier this week, the bloc's top diplomat, Josep Borrell, warned that the EU may run out of gas during the upcoming cold season.
"Europe is facing a perfect storm: energy prices are up, economic growth is down and winter is coming," he said.
Russian President Vladimir Putin has rejected Western accusations that Moscow could cut off gas supplies to the EU, stating that Russian energy giant Gazprom was "ready to pump as much as necessary" but that the EU had "closed everything themselves." He previously called the bloc's sanctions on Russia "insane and thoughtless," and accused EU leaders of committing economic "suicide" under orders from the US.
Even before the Russia-Ukraine conflict, British consumers were seeing sharp hikes in energy costs. The price cap announced by the regulator Ofgem in early February, which went into effect in April, marked a 54% increase from the previous rate.
(RT.com)
Get a daily dose of Hong Kong Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Hong Kong Herald.
More InformationBEIJING, China: China's national soccer team may struggle to stir excitement, but its humanoid robots are drawing cheers — and not...
]LONDON, U.K.: A World Health Organization (WHO) expert group investigating the origins of the COVID-19 pandemic released its final...
FRANKFURT, Germany: Germany has become the latest country to challenge Chinese AI firm DeepSeek over its data practices, as pressure...
TORONTO, Canada: Harvard University and the University of Toronto have created a backup plan to ensure Harvard graduate students continue...
BONN, Germany: Despite widespread belt-tightening across the United Nations, nearly 200 countries agreed this week to increase the...
SEATTLE, Washington: U.S. coffee company Starbucks has said it is not planning to sell all of its business in China, even though a...
NEW YORK, New York - Global stock indices closed with divergent performances on Tuesday, as investors weighed corporate earnings, central...
TORONTO, Canada: Canadian Prime Minister Mark Carney announced late on June 29 that trade negotiations with the U.S. have recommenced...
Vancouver, Canada: A high-stakes legal showdown is brewing in the world of athleisure. Lululemon, the Canadian brand known for its...
LONDON, U.K.: British oil giant Shell has denied reports that it is in talks to acquire rival oil company BP. The Wall Street Journal...
NEW YORK, New York - U.S. stock markets closed firmly in positive territory to start the week Monday, with the S&P 500 and Dow Jones...
WASHINGTON, D.C.: On Friday, President Donald Trump announced that he was halting trade discussions with Canada due to its decision...