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UK borrows heavily once more to reduce energy shock

Liz Truss, the country’s new leader, on Thursday signed a law to mitigate the economic shock of the war in Ukraine, which might cost the nation roughly 150 billion pounds ($172 billion), by capping consumer energy prices for two years.

 

In light of the prolonged recession that Britain is currently experiencing, which was brought on by a nearly quadrupling of household energy costs, Truss, who was named prime minister on Tuesday, proposed what she called bold immediate action to safeguard both consumers and businesses.

 

She told lawmakers, ‘We are helping this country get through this winter and the one after that, and we are addressing the reasons of high pricing so we are never in the same situation again.’

 

‘This is the moment to be brave, we are confronting a global energy crisis, and there are no cost-free options.’

 

The plan, according to Truss, would prevent the anticipated 80% jump in energy prices that was coming in October and that threatened the financial stability of millions of individuals and businesses, keeping typical household energy costs at roughly 2,500 pounds annually for two years.

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