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UK Taxpayers on the Hook for Truss’s £200 Billion Energy Plan

  • Proposal would require borrowing and drive up budget deficit
  • National debt already at £2.3 trillion and set to surge
New UK prime minister Liz Truss gives her first speech at Downing Street.
New UK prime minister Liz Truss gives her first speech at Downing Street.

Photographer: Leon Neal/Getty Images 

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.