The cost of living crisis is impacting us all in one way or another.
According to BBC News, Prime Minister Liz Truss is expected to slash energy prices by borrowing billions.
As we are all aware, there is an expected rise in energy prices in the UK with the average households bills expected to rise to an eye-watering £3,549 towards the end of the year, compared to the average £1,971.
The new Prime Minister has made a promise to “deliver on the energy crisis” with the exact details expected to be announced on Thursday of this week.
The plan, as we understand it now, is that the government will financially support UK residents and customers will not be expected to repay this money.
The new chancellor, Kwasi Kwarteng, has hinted that the government is willing to borrow the billions it would take to provide financial support for the country.
The director of the Institute for Fiscal Studies, Paul Johnson, said:
“One of the dangers here is that it could even be more expensive than £100bn,”
“There has to be a risk that energy prices stay high for a long time, perhaps even up to three or four years,”
“Then this starts being baked into public spending long-term.”
Unfortunately, businesses will be impacted differently.
The set-up for businesses may be more complex but some reports hint that it may see the government insist that energy firms offer cutbacks on the unit price of energy that businesses use.
Craig Beaumont from the Federation of Small Businesses said:
“This commitment looks very promising, and arguably the best reassurance that small businesses need that some form of help with bills will follow – not just for households.
“The scope and reach of the help is going to be absolutely crucial to save hundreds of thousands of small businesses this winter.”
That will be a huge relief for so many people.
