>UK taxpayers will be on the hook for as much as £200 billion ($230 billion) over the next 18 months to cover the cost of Prime Minister Liz Truss’s plans to contain energy prices, according to people familiar with the policy.
>Documents seen by Bloomberg state that energy suppliers will “receive funding from HM Government” to cover the difference between wholesale market costs and what they are legally allowed to charge customers. As currently structured, those costs would be financed out of government borrowing, the people said, asking not to be named because the discussions are private. A spokesman for Truss declined to comment.
>Truss takes office on Tuesday as successor to Boris Johnson and is under pressure to deliver swift and decisive action to shield British households and businesses from surging energy costs as Russia chokes off the supply of natural gas to Europe.
>As currently drawn up, the package includes £130 billion to freeze household bills until April 2024 and a discount scheme for business that could cost up to £67 billion over 12 months, the documents show.
>The scale of the support comes close to the £310 billion handed out during the pandemic and will add about 10% to the UK’s £2.3 trillion in national debt. Borrowing that amount would drive the budget deficit to level that have only been seen in modern times during the gobal financial crisis and the Covid pandemic.
>Paying for the support may put government borrowing costs under pressure as the government raises the debt in bond markets. Truss has limited room for maneuver on public finances after promising “no new taxes” during her campaign to win the leadership of the governing Conservative Party.
>She has promised to make government savings to pay for her separate £30 billion of payroll and corporate tax cuts and Deutsche Bank estimates she could find £15 billion by shrinking the public sector workforce.
>“I’m skeptical about whether we’ve got room for big increases in spending and tax cuts,” former Chancellor of the Exchequer Philip Hammond said on Bloomberg TV. “The UK economy is perhaps more fragile than many UK citizens understand. We can’t just solve that by borrowing money and handing it out to people.”
>Under an alternative industry proposal, the money would have come from a private deficit fund guaranteed by the government and repaid over the course of a decade or more by surcharges on bills. That would have had a far smaller impact on the the government finances.
Author: Philip Aldrick
Boomers saddling the young is not surprising. we’ve been dealt that before. it’s how often they are doing it and the amount that’s alarming.
Labours method involves not saddling young people with debt by putting the onus on energy produces. But Liz, who previously worked for energy producers…. Is obviously looking after her mates.
I know let’s allow the rich to make 172bn quid worth of profit and saddle future generations with thousands of debt.
Thank you Tories! Cunts.
There is no comeback if this happens. The economy is finished.
I mean the UK taxpayers are on the hook for everything the government does so it’s a fairly irrelevant headline.
I mean given that the bill for energy support is likely £150-200bn you’d think that a party that talks about sound money would be raising corporation tax wouldn’t you?
Lmao this is a fucking incredible plan. We pay the energy companies 200 billion… to charge us the increased rate for 2 years. That 200 billion doesn’t get us any energy, it’s just a payment for keeping bills at £4000.
It’s probably the largest theft by a corrupt party in human history. Even putin hasn’t pulled off something this big.
Oh, it’s £200 billion now.
This isn’t a plan, they’ve just decided to change when we pay for the energy…
the banks will see it as inflationary, they will forced to raise interest rates to 3 % , the sound that the free marketeers will hear isn’t cash registers but business closing
Maybe spend that on nuclear power plants and it will be cheap …
I think Beth Rigby summed it up best.
This is the clear dividing line between Labour and the Tories. Whether you agree with her or not she has strong views on not taxing these companies. And to her own detriment will stick to that knowing that as they announce profits she will get a lot of stick for putting it on the tax payer
Only if we allow it
What was all that austerity about? Are we not rich now?
Is this a proposal that goes to a vote in the commons? Seems like a tough sell
UK energy companies are set to make £170bn excess profits in the next two years. You could build 8 Sizewell C’s for that money with a windfall tax. Those 8 reactors could generate 50% of the UK’s energy demand.
Don’t forget that a month ago the tories were saying pay rises will cause inflation! Now truss is planning on handing out tax cuts (which is essentially the same as a pay rise) to the rich, inflation is no issue!
The conservatives had all summer to sort this out.
Thought paying your own bills was going to be a problem this winter?
Great news, you get to the pay the bills of some rich folk too.
How can we afford 200 billion for a temporary stop gap (that goes directly into the buckets of billionaire oil tycoons who’ve already killed the planet by the way) but not enough to nationalise energy with our own nuclear and green energy? These people are cunts – evil down to the bone.
Privatised profits and socialised losses. It’s the Tory way.
Just nationalise it, for fuck’s sake. This is beyond pathetic now.
I didn’t think I had any fucks left to give, but I’m pretty furious about this.
This is the most ludicrous plan – think of how much renewable and green energy investment you could get with that.
Just force the energy companies to reduce the prices so we’re not extorted – it’s a simple fix! £400 a month for gas and electricity is stupid
Phew…I was worried the energy companies profit would suffer.
So instead of us suffering for a few years even when green energy becomes more widely available and at a cheaper cost we will still be paying todays prices for the next 20 years to cover the cost.
I feel like this is something we ALL should’ve got a vote on, god damn it
So we have a small hiatus and pay for it for decades 👍nice one Liz (who doesn’t pay for her energy)
This useless Tory party were the ones to cave to the anti fracking lobby. Now we’re needlessly exposed to wholesale gas price changes despite sitting on a bounty of the stuff
OR, here me out
Just accelerate REMA and untie the renewable prices from gas
Here’s a thing I just thought of. And here me out here, it might sound weird…Stop.fucking.voting.for.them… or, at the very least, don’t waste your vote on someone that has no hope
Edit: voting in the first place would help
Typical short term thinking from the Conservative. The last 12 years have been focused on burdening the tax payers with national debt and cutting funding to help subsidise businesses that dont require it.The tories have been bought and paid for by the private medical sector, engery firms and large MNEs.
They don’t make decisions based off rational thinking but are purely lead by dogmic ideology and who’s donates the most to the party.
The myth that the tory are a economically responsible party need to be challenged.
They have never had your interest in mind, they never made decisions that benerfit the mojority of the uk. However they are happy to lecture us that we need to tighten our belts (financially) and tell us that we are all in this together while they rob the country blind.
The Uk has suffer 12 years of poor governance and economic decisions that have lead this country to be less economically productive and secure, more socially factured and more unstable. We have seen a massive drop in living standard, more people in unsecured employment and a significant drop in quality of life and health.
There is only one party to blame for this; the Conservatives…..
A PM we didn’t vote for coming up with a plan we don’t want. How very democratic.
At the same time Liz desires keeping taxes low.. how on earth do we pay for it? I think the conservatives are on some magic money tree drug too
So happy I’m leaving the country and not going to be lumped with this and all the continuing bad shit in the UK.
Love how the price keeps rising
So now we are at the point where we cant nationalise them because that would cost £150B and that’s too expensive
Yet
We can give them £200B for a years of energy
I just don’t understand her argument
How does a one off tax deter investment? This by the way is a tax on obscenely high profits. It isn’t happening till the end of time.
Can someone explain how that isn’t a complete load of nonsense?
‘A windfall tax is a higher tax rate on profits that result from a sudden windfall gain to a particular company or industry, often as the result of a geo-political disturbance, war or natural disaster’
Please someone in the media challenge this, it’s your job!
I hate the fact we live in a society where the people who have so much cannot just give it up for a few months to people who will literally be starving and freezing
An absolutely disgraceful solution that we see all of us saddled with significantly higher energy bills for decades to come. Absolutely unacceptable when the oil and gas companies are making absolutely disgusting excess profits off of the back of this crisis.
Shittest person does shittest thing.
It’s amazing how much money we can spent kicking the can down the road.
No more support for households? This is a fucking travesty. Genuinely fuming.
Did we expect anything else? Really? I know I didn’t. I’d rather face the increase now, than put it off and have to pay it off for years to come. And with that; private companies will reap the rearss
Now watch sterling collapse and interest rates rocket as British debt reaches almost unmanageable levels. Would not be surprised to see the dollar above the pound and interest rates above 10% by the start of next year.
The shire horse in Animal Farm is a fair surmisal of the role of most British people. How big is Liz’s loan going to be, proportionately compared with the amounts demanded by King Charles from Parliament, which finally pushed the people into corrective action? This bunch of carpet baggers are taking the Michael (along with the kitchen sink)
44 comments
Article:
>UK taxpayers will be on the hook for as much as £200 billion ($230 billion) over the next 18 months to cover the cost of Prime Minister Liz Truss’s plans to contain energy prices, according to people familiar with the policy.
>Documents seen by Bloomberg state that energy suppliers will “receive funding from HM Government” to cover the difference between wholesale market costs and what they are legally allowed to charge customers. As currently structured, those costs would be financed out of government borrowing, the people said, asking not to be named because the discussions are private. A spokesman for Truss declined to comment.
>Truss takes office on Tuesday as successor to Boris Johnson and is under pressure to deliver swift and decisive action to shield British households and businesses from surging energy costs as Russia chokes off the supply of natural gas to Europe.
>As currently drawn up, the package includes £130 billion to freeze household bills until April 2024 and a discount scheme for business that could cost up to £67 billion over 12 months, the documents show.
>The scale of the support comes close to the £310 billion handed out during the pandemic and will add about 10% to the UK’s £2.3 trillion in national debt. Borrowing that amount would drive the budget deficit to level that have only been seen in modern times during the gobal financial crisis and the Covid pandemic.
>Paying for the support may put government borrowing costs under pressure as the government raises the debt in bond markets. Truss has limited room for maneuver on public finances after promising “no new taxes” during her campaign to win the leadership of the governing Conservative Party.
>She has promised to make government savings to pay for her separate £30 billion of payroll and corporate tax cuts and Deutsche Bank estimates she could find £15 billion by shrinking the public sector workforce.
>“I’m skeptical about whether we’ve got room for big increases in spending and tax cuts,” former Chancellor of the Exchequer Philip Hammond said on Bloomberg TV. “The UK economy is perhaps more fragile than many UK citizens understand. We can’t just solve that by borrowing money and handing it out to people.”
>Under an alternative industry proposal, the money would have come from a private deficit fund guaranteed by the government and repaid over the course of a decade or more by surcharges on bills. That would have had a far smaller impact on the the government finances.
Author: Philip Aldrick
Boomers saddling the young is not surprising. we’ve been dealt that before. it’s how often they are doing it and the amount that’s alarming.
Labours method involves not saddling young people with debt by putting the onus on energy produces. But Liz, who previously worked for energy producers…. Is obviously looking after her mates.
I know let’s allow the rich to make 172bn quid worth of profit and saddle future generations with thousands of debt.
Thank you Tories! Cunts.
There is no comeback if this happens. The economy is finished.
I mean the UK taxpayers are on the hook for everything the government does so it’s a fairly irrelevant headline.
I mean given that the bill for energy support is likely £150-200bn you’d think that a party that talks about sound money would be raising corporation tax wouldn’t you?
Lmao this is a fucking incredible plan. We pay the energy companies 200 billion… to charge us the increased rate for 2 years. That 200 billion doesn’t get us any energy, it’s just a payment for keeping bills at £4000.
It’s probably the largest theft by a corrupt party in human history. Even putin hasn’t pulled off something this big.
Oh, it’s £200 billion now.
This isn’t a plan, they’ve just decided to change when we pay for the energy…
the banks will see it as inflationary, they will forced to raise interest rates to 3 % , the sound that the free marketeers will hear isn’t cash registers but business closing
Maybe spend that on nuclear power plants and it will be cheap …
I think Beth Rigby summed it up best.
This is the clear dividing line between Labour and the Tories. Whether you agree with her or not she has strong views on not taxing these companies. And to her own detriment will stick to that knowing that as they announce profits she will get a lot of stick for putting it on the tax payer
Only if we allow it
What was all that austerity about? Are we not rich now?
Is this a proposal that goes to a vote in the commons? Seems like a tough sell
UK energy companies are set to make £170bn excess profits in the next two years. You could build 8 Sizewell C’s for that money with a windfall tax. Those 8 reactors could generate 50% of the UK’s energy demand.
Don’t forget that a month ago the tories were saying pay rises will cause inflation! Now truss is planning on handing out tax cuts (which is essentially the same as a pay rise) to the rich, inflation is no issue!
The conservatives had all summer to sort this out.
Thought paying your own bills was going to be a problem this winter?
Great news, you get to the pay the bills of some rich folk too.
How can we afford 200 billion for a temporary stop gap (that goes directly into the buckets of billionaire oil tycoons who’ve already killed the planet by the way) but not enough to nationalise energy with our own nuclear and green energy? These people are cunts – evil down to the bone.
Privatised profits and socialised losses. It’s the Tory way.
Just nationalise it, for fuck’s sake. This is beyond pathetic now.
I didn’t think I had any fucks left to give, but I’m pretty furious about this.
This is the most ludicrous plan – think of how much renewable and green energy investment you could get with that.
Just force the energy companies to reduce the prices so we’re not extorted – it’s a simple fix! £400 a month for gas and electricity is stupid
Phew…I was worried the energy companies profit would suffer.
So instead of us suffering for a few years even when green energy becomes more widely available and at a cheaper cost we will still be paying todays prices for the next 20 years to cover the cost.
I feel like this is something we ALL should’ve got a vote on, god damn it
So we have a small hiatus and pay for it for decades 👍nice one Liz (who doesn’t pay for her energy)
This useless Tory party were the ones to cave to the anti fracking lobby. Now we’re needlessly exposed to wholesale gas price changes despite sitting on a bounty of the stuff
OR, here me out
Just accelerate REMA and untie the renewable prices from gas
Here’s a thing I just thought of. And here me out here, it might sound weird…Stop.fucking.voting.for.them… or, at the very least, don’t waste your vote on someone that has no hope
Edit: voting in the first place would help
Typical short term thinking from the Conservative. The last 12 years have been focused on burdening the tax payers with national debt and cutting funding to help subsidise businesses that dont require it.The tories have been bought and paid for by the private medical sector, engery firms and large MNEs.
They don’t make decisions based off rational thinking but are purely lead by dogmic ideology and who’s donates the most to the party.
The myth that the tory are a economically responsible party need to be challenged.
They have never had your interest in mind, they never made decisions that benerfit the mojority of the uk. However they are happy to lecture us that we need to tighten our belts (financially) and tell us that we are all in this together while they rob the country blind.
The Uk has suffer 12 years of poor governance and economic decisions that have lead this country to be less economically productive and secure, more socially factured and more unstable. We have seen a massive drop in living standard, more people in unsecured employment and a significant drop in quality of life and health.
There is only one party to blame for this; the Conservatives…..
A PM we didn’t vote for coming up with a plan we don’t want. How very democratic.
At the same time Liz desires keeping taxes low.. how on earth do we pay for it? I think the conservatives are on some magic money tree drug too
So happy I’m leaving the country and not going to be lumped with this and all the continuing bad shit in the UK.
Love how the price keeps rising
So now we are at the point where we cant nationalise them because that would cost £150B and that’s too expensive
Yet
We can give them £200B for a years of energy
I just don’t understand her argument
How does a one off tax deter investment? This by the way is a tax on obscenely high profits. It isn’t happening till the end of time.
Can someone explain how that isn’t a complete load of nonsense?
‘A windfall tax is a higher tax rate on profits that result from a sudden windfall gain to a particular company or industry, often as the result of a geo-political disturbance, war or natural disaster’
Please someone in the media challenge this, it’s your job!
I hate the fact we live in a society where the people who have so much cannot just give it up for a few months to people who will literally be starving and freezing
An absolutely disgraceful solution that we see all of us saddled with significantly higher energy bills for decades to come. Absolutely unacceptable when the oil and gas companies are making absolutely disgusting excess profits off of the back of this crisis.
Shittest person does shittest thing.
It’s amazing how much money we can spent kicking the can down the road.
No more support for households? This is a fucking travesty. Genuinely fuming.
Did we expect anything else? Really? I know I didn’t. I’d rather face the increase now, than put it off and have to pay it off for years to come. And with that; private companies will reap the rearss
Now watch sterling collapse and interest rates rocket as British debt reaches almost unmanageable levels. Would not be surprised to see the dollar above the pound and interest rates above 10% by the start of next year.
The shire horse in Animal Farm is a fair surmisal of the role of most British people. How big is Liz’s loan going to be, proportionately compared with the amounts demanded by King Charles from Parliament, which finally pushed the people into corrective action? This bunch of carpet baggers are taking the Michael (along with the kitchen sink)