The Big Story: Ministers Must “Bum Their Heads”
Soaring energy bills will almost certainly be the new Prime Minister’s biggest headache – and was today described as ‘a national crisis’ on the scale of the Covid pandemic by consumer expert Martin Lewis.
Now the energy bosses are summoned for crisis talks. Talks to ‘knock some heads together’ will take place tomorrow between bosses and ministers of gas and power companies after the price cap is set to hit over £4,200 in January.
Chancellor Nadhim Zahawi and Business Secretary Kwasi Kwarteng will ask leaders to submit a breakdown of expected profits and payouts.
Seeking to play down concerns about blackouts this winter, Education Secretary James Cleverly insisted that Mr Zahawi and Mr Kwarteng are “calling on the leaders of these big energy companies to bring down some heads together and basically holding them accountable for what they’re going to do. make these profits”.
Mr Zahawi said the Treasury was preparing “options” for the next prime minister. This is how the cost of living crisis could be alleviated – but Jeremy Warner fears that neither of the two candidates can save us from the crisis.
Meanwhile, support is growing for the Don’t Pay UK movement – a campaign calling on the government to roll back energy price hikes or deal with a million people canceling their direct debits.
But Derek Lickorish, chairman of energy company Utilita, insisted energy companies “will not be able to subsidize bills” and called for a social tariff to help poorer households.
Read more about how Ofgem, the energy regulator, is warning that customers who refuse to pay will drive up all bills.
Truss Facing Red Wall Voters
With questions about the cost of living crisis undoubtedly ringing in her ears, Liz Truss faces questions from Red Wall voters.
Follow the Conservative leadership favorite’s responses in our live blog with Dominique Penna – who will then cover the grilling of his rival Rishi Sunak from Nick Robinson, the presenter of the Today programme, on the BBC at 7 p.m.
Their appearances come ahead of tomorrow’s sixth leadership contest, hosted by The Telegraph and hosted by our associate publisher Camille Tominey.
Germany raises tax thresholds
The pressures on household finances are not unique to Britain, but some other countries in Europe are taking very different approaches.
As British workers brace for a stealth £30billion tax raid spurred by rising prices, Germany is readying 10billion euros (£8.5billion) in aid for families at struggling with the rising cost of living.
Finance Minister Christian Lindner said the country would raise income tax thresholds while millions of British taxpayers would be pushed into higher brackets. Read more of his thoughts.
Commentary and analysis
Around the world: special forces “behind a daring raid”
Ukrainian special forces were behind the daring attack on a Russian air base 200 km from occupied Crimea, according to an official in Kyiv. A US source said the assault was allegedly carried out unarmed via Washington. Our live blog has the latest news after at least 12 explosions killed one person and damaged Russian planes. In his analysis, James Kilner says Vladimir Putin is going to be shaken.
Wednesday Interview: ‘I never knew who Alan Turing was – no one did’
Booker nominee Alan Garner recounts Sam Leith about a rewarding chance friendship and his own remarkable career. Read the interview.