Liz Truss suggests Labor’s energy plan ‘sticks band-aids’ on rising bills problem | political news

Liz Truss has suggested that Labor’s energy plan is “putting band-aids” on the issue of rising household bills.

Speaking to broadcasters ahead of the seventh Conservative party rallies in Perth tonight, the… Tory leadership frontrunner said its priority is “tax cuts,” which “will solve this problem for the long term.”

The foreign minister also called windfalls “random”.

On Monday, Sir Keir Starmer unveiled Labour’s plan to lower household bills by freezing the energy price ceiling.

Cheapest Supermarket Named – Cost of Living Last

The Labor leader said his proposal would be paid for by introducing a new windfall tax on the profits of oil and gas companies without the “major fiscal loophole” present in government policy.

Sir Keir said his “radical” plan “helps us through the winter” and accused the government of “saying absolutely nothing”.

He continued: “The fear is that if the government doesn’t ramp up prices, the average will rise from £2,000 or so to £3,500, and then back up to £4,200.

“We’re saying we’re going to stop that, we won’t allow those prices to go up and we’ll make sure that those who are really making a lot of profit from this pay to keep those prices down.

“And that’s the kind of plan that I think people are very, very receptive to.”

The plan has been criticized for helping everyone with their bills, not just low-income households, but Sir Keir said it would help lower inflation.

However, the Institute for Fiscal Studies (IFS) questioned Labour’s explanation of how it would fund the aid package, with Paul Johnson, director of the think tank, telling BBC Radio 4’s Today program that the party’s plan to increase the canceling the energy price – if extended from the proposed six months to a year – would cost as much as the COVID leave scheme.

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Starmer wants to freeze energy prices

Ms Truss said Labor’s policy of raising taxes on oil company profits would “deter” investors in the UK.

Now my priority is to lower taxes so that people can keep more of their own money while making sure we increase energy supplies,” she told the broadcasters.

“It’s wrong to stick with plasters on this problem.

“What we actually need to do is ensure that we unleash more energy, for example from the North Sea.

“We’re investing in technologies like nuclear, and we’re also finding more renewable energy.

“We need to solve this problem for the long term.”

Read more:
Who’s proposing to tackle the rising energy bills of troubled households?
What is a windfall and has the UK tried it before?

Credit Starmer for having a plan – but it’s a questionable short-term solution

When asked if she would rule out further windfalls on oil and gas companies, Ms Truss continued: “I am not in favor of windfalls because they essentially deter investors to our country and what we need is for us to have jobs and growth.

“We need more opportunities for great people, for example to invest in this distillery – we need to attract more of that.

“If we have arbitrary taxes, that deters investment and stops growth in the long run.”

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Labor’s energy plan explained

Mr Sunak has unveiled a plan to cut back on rising energy bills for up to 16 million vulnerable peoplewhich he hopes will lead him to 10 Downing Street.

While a spokesman for the former chancellor’s campaign team accused Ms. Truss’ energy plan of being “as clear as mud”.

“It’s not good enough to say you have to wait until the end of September. Families need certainty now – bills will rise and wages have been hit hard by rising inflation,” they said.

“Liz needs to make her cost of living clear so retirees and hardworking families now know if they’re going to lose.”

Yesterday, the Prime Minister’s official spokesperson confirmed that: Mr Johnson is on leave this week and that no further steps will be taken to alleviate the cost of living until his successor is appointed on September 5.

Energy analysts have predicted that typical October energy bills could rise to around £3,500 and over £4,200 in January.

The government has announced that households will receive £400 this autumn to pay fuel bills.

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