Politics to be put on hold while the nation mourns its monarch
PM unveils package to freeze average bills at £2,500 £100bn-plus plan includes new dash for gas and oil Business to get ‘equivalent’ help... windfall tax ruled out
PARLIAMENT is set to be suspended while the nation mourns the Queen.
But ministers are in urgent talks with the Commons Speaker about whether they can pass legislation to shield households and businesses from soaring energy bills during this time.
Prime Minister Liz Truss yesterday announced plans to limit the price suppliers can charge customers for units of gas amid the global energy crisis.
But the intervention requires legislation, and the Government’s plans have been thrown into disarray by the death of the Queen.
MPs will sit today for tributes, which are due to be opened by the Prime Minister, from noon and until 10pm.
The Commons will, unusually, sit again tomorrow for further tributes from 2pm and a small number of senior MPs will also take an oath of allegiance to the King.
By convention, Parliament is then expected to be suspended for the duration of the national period of mourning.
however, the urgency of the energy crisis and challenges faced by families is such that ministers are now in talks to see whether the legislation required to enact the Government’s proposals should be put before MPs during the mourning period.
It is understood that the Government will continue to work through the details of the energy price guarantee – but it will be communicated to the public in a factual way.
Miss Truss had also been planning for Chancellor Kwasi Kwarteng to deliver a mini-Budget to the Commons to set out the expected costs of the energy support plan, but the timing for this has not been confirmed.
Government press releases, announcements and ministerial visits will pause during the mourning period, though important information will still be communicated to the public.
Regular statistics will continue to be published, however. Guidance on how the national mourning should be conducted will also be issued.
Questions remain about other political events which are due to take place over the coming weeks.
The Liberal Democrats’ annual autumn party conference, which is due to start in Brighton on September 17, falls within the official mourning period.
A party source said: ‘We’ve suspended all campaigning. It is just too soon to even consider that issue [conference] while the nation mourns. We will update everyone on that as soon as we can.’
Labour and the Conservative Party are scheduled to hold their own gatherings later in September and at the start of October. It remains unclear whether these will go ahead.
Commons Speaker Sir Lindsay hoyle said yesterday that the Queen’s death is a ‘terrible loss for us all’, adding: ‘ We will miss her beyond measure.’
In a statement, Sir Lindsay said: ‘For all of us, the Queen has been a constant presence in our lives – as familiar as a member of the family, yet one who has exercised a calm and steadying influence
‘A constant presence’
over our country.
‘Most of us have never known a time when she was not there. her death is not only a tragedy for the Royal Family, but a terrible loss for us all.’
Sir Lindsay added: ‘During her 70 years on the throne – and even before that, as a teenager, reassuring and engaging with children and families disrupted by the Second World War – she has given our lives a sense of equilibrium.
‘While her reign has been marked by dramatic changes in the world, her Majesty has maintained her unwavering devotion to the UK, the British Overseas’ Territories and the Commonwealth of Nations – and her gentle authority and sound reason have been felt throughout.
‘ She has travelled the world extensively, modernised the Royal Family and is credited with inventing the royal “walkabout”, which enabled her to meet people from all walks of life during her visits. As head of state, she has provided advice and the benefit of long experience to 15 prime ministers during her reign – and met more than a quarter of all the American presidents in the history of the US.
‘The Queen has been involved in everything that is important to us and which makes us who we are – from state occasions to royal weddings, and especially at Christmas, with her wise words and reflective annual message.’
Sir Lindsay concluded: ‘She has been a mother, grandmother and great-grandmother – but she has been our Queen, and we will miss her beyond measure.’
LIZ Truss yesterday unveiled an ‘extraordinary’ energy support package that will save households an average of more than £1,000 a year.
The Prime Minister said the new energy Price Guarantee would cap average bills at £2,500 for the next two years, protecting millions from huge rises in gas and electricity prices.
Businesses will get ‘equivalent’ help for six months to help them cope with price rises of anything up to 500 per cent this winter. charities and public sector organisations, such as schools, will also benefit.
unveiling the plan in the commons, Miss Truss said the intervention would ‘give people reassurance ahead of the winter that energy bills are going to be affordable’.
she said the terrifying surge in energy prices was the result of Vladimir Putin ‘weaponising energy supplies as part of his illegal war on ukraine’, and ‘extraordinary challenges call for extraordinary measures’.
The Treasury was unwilling to estimate the likely cost of what is effectively a blank cheque, but said it was such a major intervention that it would knock five points off inflation forecasts.
Independent analysts have suggested the cost could top £150 billion – more than double the total bill for the £70 billion covid furlough scheme.
But government sources insisted the final net cost would be lower, particularly when the benefits, such as keeping thousands of businesses afloat, were factored in.
One source said: ‘ The cost will represent the consequences of the global energy price shock. There is no scenario in which there are no fiscal consequences.
‘If we did not act, you would see energy companies fail, households unable to pay their bills and viable businesses going to the wall. There would be huge consequences for the economy.’
In another major intervention yesterday, the PM signalled a massive push to increase domestic energy supplies to ensure the uK was ‘never in this situation again’.
she said ministers were ready to issue more than 100 new licences for drilling in the North sea.
and she announced an immediate end to the ban on fracking.
Miss Truss added: ‘Decades of short-term thinking on energy has failed to focus enough on securing supply – with Russia’s war in ukraine exposing the flaws in our energy security and driving bills higher. I’m ending this once and for all.’
Other elements of the radical energy package included:
confirmation that households will still get a previously announced £400 rebate on their bill this winter to help with costs;
a pledge that 1.5 million households reliant on heating oil will get ‘equivalent’ help;
Ruling out an extension to the windfall tax on energy profits, which Miss Truss warned would deter investment in new supplies;
The creation of a new energy supply taskforce to negotiate lower long-term prices;
a review to ensure the Government’s net zero green pledge is pursued in a way that is ‘pro-business and pro-growth’.
The package was given a cautious welcome by MPs and campaigners, who have warned that many families and businesses faced a financial crisis this winter.
citizens advice chief executive Dame clare Moriarty said it would provide ‘much-needed relief for millions’ but warned many would still face a tough time dealing with rising bills this winter.
Martin Lewis, founder of the Moneysavingexpert website, said the freeze was ‘not a panacea’, and warned that the poorest would need more help. But he added:
‘Extraordinary measures’
‘Millions, if not tens of millions, will be able to breathe a sigh of relief that they will be able to pay their bills this winter.’
save the children said many lowincome families would still struggle to pay bills that will be frozen at roughly double the level they were a year ago.
economists criticised the failure to publish an estimate of the likely cost. Paul Johnson, director of the Institute for Fiscal studies, said: ‘This is a huge policy intervention which could cost over £100 billion in the next year. The failure to provide any costing was extraordinary.’
No 10 said there would be no drive to encourage people to curb their energy use this winter.
Labour, which has proposed a six-month bills freeze, called for an additional windfall tax on energy firms. sir Keir starmer said the ‘vast profits’ being made were ‘not the reward of careful planning’.