China News Service, September 8 (Reuters) - Britain's new Prime Minister Truss is preparing to launch an emergency energy support package to deal with soaring energy bills, a move that may reduce inflation but will increase government borrowing by more than 1,000 yuan. billion pounds.
On September 6, local time, Elizabeth Truss arrived at the Prime Minister's Office.
According to people familiar with the matter, Truss will announce details of the energy crisis plan on the 8th local time to protect British households and companies from the impact of soaring energy bills, which may be as high as 100 billion pounds.
Deutsche Bank also said the Truss government's energy support package and tax cut pledges could cost 179 billion pounds, an amount equal to half what the UK spent on the coronavirus response.
According to reports, some investors are currently worried that the Truss government will have to sell debts in order to honor its energy support plan and tax cuts promises, causing the pound to fall to its lowest level against the dollar on the 7th since 1985.
The pound has lost 10% of its value since the beginning of June.
While a weaker pound could add to inflationary pressures, Truss' plans to freeze energy bills could help ease cost-of-living pressures for consumers.
Millions of Britons say they will face a painful choice between eating and heating this winter as the average household's annual bills rise by 80 per cent from October, according to a survey.
Another survey said more than 20 percent of British adults plan to leave their heating off for the entire winter this year due to soaring energy prices.
Truss said, however, that some of the emergency energy plan spending will not be funded through a windfall tax on energy companies.
"I'm against windfall taxes. Preventing companies from investing in the UK is the wrong thing to do," Truss said.