London Daily

Focus on the big picture.
Monday, Mar 16, 2026

Liz Truss’s energy costs package lacks important details

Liz Truss’s energy costs package lacks important details

Prime minister bows to political and moral pressure with £150bn state effort –but how it will be financed still unclear

There are two main things to note about Liz Truss’s energy costs package. First, there is much detail to come. Also, it is an undeniable paradox that the first move of a prime minister surrounded by former Taxpayers’ Alliance staff is a £150bn state effort to fix commercial prices.

Much like Boris Johnson would never have wanted to be the prime minister to curtail people’s liberties more severely than anyone since wartime, it is fair to say Truss would rather not have begun her tenure in No 10 with what is known as the energy price guarantee.

One of the defining elements of Truss’s successful campaign to succeed Johnson was her repeated talk of tax cuts and suspending green levies as the primary way of helping people with soaring bills.

An early Truss campaign interview with the Financial Times even airily dismissed the idea of “handouts”. Future campaign messaging was less clear, but still resistant to what was disparagingly referred to as “Gordon Brown economics”.

As it has turned out, Truss has ended up more or less with what Brown argued for in early August: a call for a freeze on prices that pre-empted not just the government but even Brown’s Labour party.

What changed was the sheer weight of political and, what you might even term, moral pressure.

Truss was told by an array of experts that failing to take bold action would create a humanitarian disaster, with millions of households cold or hungry or both, businesses collapsing en masse, with the impact on the economy, and especially on public health inequalities, felt for a generation.

One effect of the sheer one-sidedness of the argument is that it made Truss’s decision to U-turn (whatever her aides might argue, it is a U-turn, even a gradual one) politically easier.

Responding to Truss’s statement in the Commons, Keir Starmer noted the change of stance, but made much more of Truss’s refusal to extend a windfall tax on energy firms’ unexpectedly high profits to part finance it.

It is another political paradox that Truss is not only committing about the same as the annual NHS England budget on price controls, she is doing so with little apparent plan to pay for it, beyond borrowing. An extended windfall tax would arguably have only contributed a bit, but its absence is notable, and could become a millstone for the government.

It is not only the financing that remains opaque. A lot of the mechanism for the domestic help is barely sketched out, not least how ministers will help people outside the mainstream energy market, such as those who use heating oil or people living in flats with communal energy sources that fall outside the price cap.

The plans for businesses are, so far, little more than a broad commitment: a sixth-month scheme will offer “equivalent support”, to be made more targeted after that.

There is a final political lesson from Truss’s statement, and that is that the climate emergency sceptics have much more sway in government than before, with the restoration of fracking and a commitment to 100 or more new North Sea drilling projects.

Officially, Truss remains committed to the UK’s net zero target by 2050, but her announcement of a review into how this can be met in a way that is “pro-business and pro-growth” tells another story – even if that review is led by the green-inclined Tory MP Chris Skidmore.

Time, again, will tell how much the public side with Starmer, who told MPs that “doubling down on fossil fuels is a ludicrous answer to a fossil fuel crisis”. But fracking, at least, has been repeatedly shown to be unpopular with the public.

There is, of course, one final and entirely exterior factor. With the Queen gravely ill, all of this might get forgotten amid a long period of national mourning.

Newsletter

Related Articles

0:00
0:00
Close
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
AI-Generated Singer Becomes Viral Voice for Iranians With New Anthem
London Private Club Founder Plans Exclusive Palm Beach Venue Near Trump’s Mar-a-Lago
Ed Davey Urges Britain to Build Fully Independent Nuclear Missile Capability
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
US Treasury Links British Polo Patrons to Alleged Venezuelan Oil Proceeds Laundering Scheme
Hundreds Gather in London Despite Ban on Annual Pro-Palestinian March
Two Dead and Multiple Students Seriously Ill After Invasive Meningitis Outbreak at UK University
UK Considers Deploying Ships and Mine-Hunting Drones to Reopen Strait of Hormuz
Starmer and Trump Discuss Urgent Need to Reopen Strait of Hormuz Amid Escalating Iran Conflict
Prince Harry and Meghan Markle’s Planned Australia Visit Draws Mixed Reaction From Local Communities
Trump Calls on France and UK to Help Safeguard Strait of Hormuz Shipping Route
Boris Johnson Labels Bitcoin a ‘Ponzi Scheme’, Sparking Debate in Crypto World
UK Considers Targeted Aid for Vulnerable Households as Energy Costs Rise
Stellantis Urges Immediate Review of UK Electric Vehicle Sales Targets
Home Office Reverses Course to Allow Some Dual Nationals to Enter UK Using EU Passports
Reform UK Proposes Replacing Top Civil Servants With Officials Aligned to Government Agenda
Netflix Adds Critically Acclaimed ‘Best Film of 2025’ With Perfect Rotten Tomatoes Score
‘The Sums Don’t Add Up’: UK Farmers Hit by Soaring Costs as Iran War Disrupts Global Supplies
Confidential UK Biobank Health Records Found Online After Researchers Accidentally Expose Data
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
×