London Daily

Focus on the big picture.
Monday, Mar 23, 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
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
UK Minister Says No Evidence Iran Can Strike Europe Despite Heightened Warnings
British-Iranians Voice Safety Concerns to Authorities as Regional Conflict Intensifies
Confirmed Meningitis Cases Linked to Kent Outbreak Revised Down to Twenty
UK Government Sees No Evidence Iran Can Strike London Amid Rising Regional Tensions
Debate Grows Over Recognition of Indigenous Cultural Icons in the United Kingdom
Iran Missile Launch Toward Diego Garcia Raises Questions After Failed Strike on US–UK Base
Donald Trump Amplifies Viral Satirical Clip Highlighting UK–US Political Dynamics
UK Satirical Show Draws Attention with Sketch Referencing Trump and Prince Andrew
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
Northern Lights Expected Over UK Skies Tonight Amid Strong Solar Activity
UK Condemns Iran Missile Strike and Warns Against Threats to British Personnel
UK Warns of Global Flight Disruptions as Iran Conflict Escalates Under Trump’s Leadership
UK Condemns Iran After Missile Strike Targets Strategic Diego Garcia Base
Deadly Meningitis Outbreak in UK Reinforces Urgency of Vaccination Campaigns
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
UK Rules Out Cyprus Base Role in Joint US Self-Defence Framework
UK Ends Hereditary Peerage Rights in Parliament in Historic Constitutional Reform
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
×