PM unveils new energy plan

Prime Minister Liz Truss has announced the Government's new plan to support households and businesses through the ongoing energy crisis, said to be worth up to £150 billion.

Under the plan, the average household energy bill will be capped from October at £2,500 a year for two years, with businesses receiving an equivalent support package over the next six months.

Energy costs for businesses and households will be capped at the same price per unit under the new scheme, which will temporarily remove the annual £150 green levy.

The £400 discount on energy bills for all households promised by former Chancellor Rishi Sunak earlier this year is also being kept.

Chancellor of the Exchequer Kwasi Kwarteng is expected to outline the costs of this package in a fiscal statement later in September.

The Prime Minister confirmed the Government will not be calling for a windfall tax on energy companies to pay for the plan - borrowing will increase instead.

Jonathan Geldart, Director General of the Institute of Directors, said:

"It is encouraging that the intervention will itself put downwards pressure on consumer price inflation, which has been top of the business worry list for the best part of a year."

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