In order to address the energy crisis, experts have cautioned Liz Truss that she needs to create “a meaningful strategy.” In light of concerns regarding the anticipated effects of tax cuts and the suspension of green energy tariffs, plans put forth by Conservative leadership front-runner Liz Truss have been denounced as “fundamentally unserious.” According to Truss’ campaign, if elected, she will “immediately take action” to assist homes amid the current energy crisis. This statement was made in response to Ofgem’s announcement of the hike in the energy price cap today. Requests for extra direct assistance on top of the sums the government has already announced have been met with resistance by the foreign secretary thus far.
Her proposals are expected to improve disposable income for the wealthiest households by £936, but only by £92 for the poorest households, according to research by the Resolution Foundation.
What tax-cut initiatives does Liz Truss have?
A representative for Truss recognised that the hike “would raise severe concerns” to many households in a statement issued in response to the announcement of the energy cap price increase. “Liz, as Prime Minister, would make sure that people have the help they need to get through these trying times,” they declared. By lowering taxes and suspending green energy tariffs, she will move right now to put more money back in people’s pockets.
“This is in addition to continuing efforts like the Energy Bills Support Scheme, which will grant consumers a £400 reduction starting in October, and the $1,200 package of assistance for the most disadvantaged. Liz “will fight tirelessly to provide long-term energy affordability and security, unleashing additional energy by optimising our North Sea oil and gas output – helping keep costs in check in the future.”
How Truss should act, according to experts:
The plans, however, have come under fire as being insufficient, with economists from all political stances questioning whether either tax cuts or a suspension of green energy tariffs would actually make a significant difference for those who are most in need. The poorest households—many of which are seniors and assistance recipients—do not pay taxes and as a result would not be impacted by changes to tax-free allowances, according to numerous critics. Truss’ measures will “accomplish nothing,” according to James Meadway, director of the progressive think tank Progressive Economy Forum.
Millions of people are in danger of living in poverty due to gasoline costs, and companies like BP and Shell directly benefit from their plight, he claimed. Energy costs have increased as a result of profiteering, yet Truss wants to reduce taxes from the richest firms. Upon becoming prime minister, Meadway advises Truss to carry out three tasks, the first of which is to reverse the energy price increase that was paid for by “furlough-style government borrowing.” The second is to return failing energy corporations to public ownership, he added. The third step is to reveal a sizable investment package for home insulation and safe, secure, affordable renewable energy. “Anything less than this fails to appreciate the magnitude of the social and economic catastrophe we are currently experiencing.
“Truss’s current ambitions are fundamentally not serious,”