Liz Truss received a huge boost to her energy bailout plans, after new forecasts predicted the cost to the Treasury might only be half of what was originally calculated. The new Prime Minister and her Chancellor Kwasi Kwarteng acted decisively to ease the burden of rising energy costs on UK consumers. The Government announced it would freeze energy bills at £2,500 a year for two years in a bid to protect all households from soaring gas and electricity prices.
Number 10 also pledged to discount gas and electricity unit prices for businesses for an initial six-month period starting from October 1st.
Government officials calculated the cost to the Treasury at £60 billion.
However, the Centre for Economics and Business Research (CEBR), believes these calculations are too pessimistic.
The economic consultancy said the energy support bill was likely to cost £30 billion rather than £60 billion.
Number 10 also pledged to discount gas and electricity unit prices for businesses for an initial six-month period starting from October 1st.
Government officials calculated the cost to the Treasury at £60 billion.
However, the Centre for Economics and Business Research (CEBR), believes these calculations are too pessimistic.
The economic consultancy said the energy support bill was likely to cost £30 billion rather than £60 billion.