Let’s start directly with the issue of greatest concern to the British: the cost of energy.
People will see the horror of Putin’s illegal invasion of Ukraine.
We’ve heard reports that the already expensive electricity bill could reach £6,500 next year.
Mr. President, we were never going to let this happen.
The Prime Minister has just announced one of the most significant interventions the British government has ever implemented.
People need to know help is coming.
And help will come.
We are taking three steps to help homes and businesses reduce their energy costs.
First, to help households, the Energy Price Guarantee caps the unit price consumers pay for electricity and gas.
This means that over the next two years, a typical annual household bill will be £2,500 for her.
At current prices, a typical home would save at least £1,000 a year.
This winter, he continues an existing plan to offer a rebate of £400 to all households.
All in all, Mr President, this year we will cut everyone’s electricity bills by about £1,400.
And millions of the most vulnerable households will receive additional payments, bringing his total savings to £2,200 this year.
Second, in addition to helping people, we must support the companies they work for.
The Electricity Bill Assistance Scheme reduces wholesale gas and electricity bills for all businesses, charities and the UK public sector such as schools and hospitals.
This will provide all businesses nationwide with price guarantees equivalent to those for homes.
Third, energy prices are highly volatile, going up and down hourly.
This poses a real risk to energy companies that are otherwise viable businesses.
These companies help provide the essential energy that homes and businesses need.
So, to support the market, we are announcing the Energy Markets Financing Scheme.
The scheme, which will be implemented jointly with the Bank of England, will provide 100% guarantees for commercial banks and emergency liquidity for energy traders.
Independent analysts agree that the government’s energy plan will cut peak inflation by about 5 percentage points.
This will lower the cost of servicing indexed public debt, easing widespread pressure on the cost of living.
It also helps millions of people and businesses across the country reduce their energy costs.
This government is on the side of the British people during the worst energy crisis in generations.
The Bank of England took action again yesterday, taking further steps to curb inflation.
I can assure the House of Commons that this Government regards the independence of the Bank of England as inviolable.
And we maintain close coordination and talk to the Governor twice a week.
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High energy costs aren’t the only problem facing the country.
Growth is not as high as we would like.
This made it difficult to pay utility bills and resulted in higher taxes.
As a result, higher taxes on capital and labor reduced returns on investment and labor, weakening economic incentives and further constraining growth.
In this cycle, the tax burden is projected to reach its highest level since Her Majesty the Queen’s accession to the throne in the late 1940s.
I am determined to break this vicious circle.
New times require new growth-oriented approaches.
The medium-term target is to achieve a trend growth rate of 2.5%.
And our plan is to increase supply in the economy through tax cuts and reforms.
In this way, we ensure higher wages, greater opportunities and, most importantly, finance current and future public services.
This is how we successfully compete with dynamically developing economies around the world.
In this way, we will turn a vicious cycle of stagnation into a virtuous cycle of growth.
As a government, therefore, we will focus on growth, even if it means making difficult decisions.
This will not happen overnight. But today we are announcing our growth plans. It sets a new approach for this new era, based on three main priorities.