Average household in Britannia will not be asked to pay more than £2,500 (around €2,900) per year for consumption electricity as well as natural gas in the next two years, as the British state will cover the difference in the price of consumption that will arise from the increase in wholesale trade, as announced by the new Prime Minister of Great Britain. Liz Truss in his speech in the House of Commons.

As part of this new package of measures announced by Truss, the UK government is effectively freezing energy prices for the benefit of consumers in order to effectively combat rapidly rising living standards and huge energy price increases.

It is worth noting that from October 1, electricity and natural gas prices were expected to rise by 80%, and further growth was expected this spring.

The prime minister also promised that businesses across the UK would also receive support for energy costs, saying the aid scheme would initially run for six months. In six months, support will focus on “vulnerable industries” and the review will decide which businesses the program should focus on. The Treasury will determine the cost of the energy support programme, but it is expected to exceed £150bn (about 173bn euros), the amount that the British government will provide through loans.

The cost of the energy support program is expected to exceed 173 billion euros.

As many analysts say, this is the largest state intervention in British history.

The plan is similar to the corresponding response plan proposed by Labor on 14 August, with one important difference. Labor proposed that these measures be funded by an emergency tax on the excess profits of oil and gas companies, a proposal that the new prime minister rejected.

“I’m against a lump sum tax,” Truss said at her first hearing in the House of Commons on Wednesday, adding: “I don’t think it’s right to stop companies from investing in the UK, which is necessary for the economy to grow. After all, growing the British economy through “tax cuts and reforms” was one of the three central policies Truss devised in her first speech as prime minister on Tuesday. The other two were linked to the energy crisis and improving the national system health care of the country.

Thus, the new energy package will be financed by additional government borrowing, meaning that the effects of economic support will be felt for several decades, said Christopher Debick, chief macro analyst at Saxo Bank.

“The only way he has to go is to open the door to a massive stimulus package and once the crisis subsides, raise taxes,” Debik explained.