Hello again,
Parliament is up and running with our new Leader of the Conservative Party and Prime Minister, Liz Truss hitting the ground running. This was demonstrated not least by announcing immediate action to help people with the cost of their energy bills within just two days of being appointed. It is a great testament to our Party that this is our third female Prime Minister, no other party has achieved this. In addition we have a Cabinet that is the most diverse ever.
On a more melancholy note, as I write, the news has just been posted that Her Majesty the Queen is under medical supervision at Balmoral Castle in Scotland with doctors concerned for her heath. It is deeply concerning news and I am sure you will join me in sending all thoughts and prayers to the Queen and her family.
SUPPORTING PEOPLE AND BUSINESSES WITH THEIR ENERGY BILLS
Over the summer I have engaged with businesses and individuals across Taunton Deane and have fed in views directly to Government in terms of the challenges they face with escalating energy prices triggered by Covid-19 and Putin’s war in Ukraine.
It is therefore so welcome that within 48 hours of being in post the Prime Minister has announced that the Government will bring forward emergency legislation to establish a new Energy Price Guarantee which will ensure that the average British household pays no more than £2,500 per year for their energy bills for the next two years from October.
This will save the average household at least £1,000 per year – giving certainty on energy prices so people can get through the winter, slowing inflation and making incomes go further. The Government will fully compensate energy suppliers for the cost of this emergency action – with the Chancellor setting out further details in the fiscal statement later this month. The new guarantee will apply to households in Great Britain, with the same level of support made available to households in Northern Ireland.
As part of the Energy Price Guarantee, green levies are also being temporarily suspended – contributing £150 to the £1,000 yearly average saving. I was pleased to hear however that our target of net zero by 2050 is still a commitment and a review on how to achieve net zero whilst at the same time growing the economy will take place.
Also it was confirmed that the £400 Energy Bill Support Scheme remains for everyone together with the £1,200 of support for the most vulnerable households already announced earlier this year. Some however will not be eligible for the schemes, in particular those living in park homes, or who use heating oil in rural areas in constituencies such as mine. I raised these specific points vociferously, so I am pleased that a discretionary fund is being set up to make sure that no one is left behind this winter.
Businesses will be offered an equivalent guarantee for six months for those hit by rising prices, and after six months further details will be provided regarding support for vulnerable sectors, such as hospitality, including our local pubs that are really feeling the pinch. Work will be ongoing with businesses to review where this support should be targeted.
Crucially though, action is also being taken to ensure that we are never in this position again. That means ending decades of short-term thinking which has allowed Putin to weaponise energy supplies as part of his illegal invasion of Ukraine. So energy supply will be ramped up and the regulation of our energy market will be fixed. This will include establishing a new Energy Supply Taskforce, in the style of the Vaccine Taskforce, to negotiate new long-term contracts with suppliers to bring down energy costs.
Together with the Bank of England, a new £40 billion facility has been secured so energy firms have the liquidity they need to manage volatility in energy markets, stabilising the market, reducing costs for the exchequer, and decreasing the chances of energy companies needing Government support.
A target has been set to make the UK a net energy exporter by 2040 achieved by expanding energy production from a wide range of renewable sources including wind, nuclear and solar, and shale gas where there is local support. Importantly also a pro-investor environment will be created to get more domestic supply projects off the ground, faster.
A review will also be held to fix the longstanding problems within our energy regulation, and we will bring forward fundamental reforms to make our energy market fit for the challenges Britain faces today.
It’s a comprehensive package, swiftly announced and I welcome it.
As ever, please do get in touch if you need to.
Yours sincerely, Rebecca
