Truss: Energy Price Guarantee will ‘give people certainty’ on energy bills

Prime Minister Liz Truss’s opening speech on the energy policy debate in the House of Commons yesterday:

Earlier this week I promised I would deal with the soaring energy prices faced by families and businesses across the UK. And today I am delivering on that promise.

This Government is moving immediately to introduce a new Energy Price Guarantee that will give people certainty on energy bills.

It will curb inflation and boost growth.

This Guarantee – which includes a temporary suspension of green levies – means that from 1st October a typical household will pay no more than £2,500 per year for each of the next two years, while we get the energy market back on track.

This will save a typical household £1,000 a year. It comes in addition to the £400 Energy Bills Support Scheme.

This Guarantee supersedes the Ofgem price cap, and has been agreed with energy retailers.

We will deliver this by securing the wholesale price for energy, while putting in place long-term measures to secure future supplies at more affordable rates.

We are supporting this country through this winter and next, and tackling the root cause of high prices, so we are never in this position again.

For those using heating oil, living in park homes or those on heat networks, we will set up a fund so that all UK consumers can benefit from equivalent support.

We will also support all businesses, charities and public sector organisations with their energy costs this winter – offering an equivalent guarantee for 6 months.

After those 6 months we will provide further support to vulnerable sectors, such as hospitality, including our local pubs.

My Rt Hon Friend the Business Secretary will work with businesses to review where this should be targeted to make sure those most in need get support. This review will be concluded within 3 months, giving businesses certainty.

In the meantime, companies with the wherewithal need to be looking for ways they can improve energy efficiency and increase direct energy generation

We will be bringing forward emergency legislation to deliver this policy. And my Rt Hon Friend the Chancellor of the Exchequer will set out the expected costs as part of his fiscal statement later this month.

I can tell the House today that we will not be giving in to calls for this to be funded through a windfall tax.

That would undermine the national interest by discouraging the very investment we need to secure home-grown energy supplies. You can’t tax your way to growth.

Instead, we are taking an approach which is pro-growth, pro-business and pro the investment we need for energy security.

This is the moment to be bold. We are facing a global energy crisis and there are no ‘cost-free’ options.

There will be a cost to this intervention. However we are also acting immediately to defray the cost of this intervention in three ways.

Firstly, by ramping up supply.

Following on from the successful vaccine taskforce, we have created a new Energy Supply Taskforce under the leadership of Maddy McTernan.

They are already negotiating new long term energy contracts with domestic and international gas suppliers to immediately bring down the cost of this intervention.

We are also accelerating all sources of domestic energy, including North Sea oil and gas production.

We will be launching a new licensing round, which we expect to lead to over 100 new licences being awarded.

And we will speed up our deployment of all clean and renewable technologies including hydrogen, solar, carbon capture and storage, and wind… where we are already the world leader in offshore generation.

Renewable and nuclear generators will move onto Contracts for Difference to end the situation where electricity prices are set by the marginal price of gas.

This will mean generators are receiving a fair price, reflecting their cost of production, further bringing down the cost of this intervention.

Secondly, today’s action will deliver substantial benefits to our economy, boosting growth which increases tax receipts and gives certainty to business.

This intervention is expected to curb inflation by up to 5 percentage points, bringing a reduction in the cost of servicing government debt.

Thirdly, this morning, together with the Bank of England, we will set up a new scheme, worth up to £40 billion, to ensure that firms operating in wholesale energy markets have the liquidity they need to manage price volatility.

This will stabilise the market and decrease the likelihood that energy retailers need our support, like they did last Winter.

By increasing supply, boosting the economy and increasing liquidity in the market we will significantly reduce the cost to government of this intervention.

As well as dealing with the immediate situation we face, we are also dealing with the root causes.

Energy policy over the past decades has not focused enough on securing supply.

There’s no better example than nuclear, where the UK has not built a single new nuclear reactor in 25 years.

It’s not just about supply. The regulatory structures have failed, exposing the problems of having a price cap applied to the retail but not the wholesale market.

All of this has left us vulnerable to volatile global markets and malign actors in an increasingly geopolitical world.

That is why Putin is exploiting by weaponising energy supplies as part of his illegal war on Ukraine.

So as well as the action we are taking today on bills, we will use the next 2 years to make sure that the United Kingdom is never in this situation again.

I will be launching two reviews.

Firstly, a review of energy regulation to fix the underlying problems. We want a new approach which will address supply and affordability for the long term.

Secondly, we will conduct a review to ensure we deliver net zero by 2050 in a way that is pro-business and pro-growth. This review will be led by my Rt Hon Friend the member for Kingswood.

We are delivering a stable environment that gives investors the confidence to back gas as part of our transition to net zero.

We will end the moratorium on extracting our huge reserves of shale, which could get gas flowing in as soon as six months, where there is local support.

We will launch Great British Nuclear later this month – putting us on the path to deliver up to a quarter of our electricity generation with nuclear by 2050.

As a result of these steps on shale and nuclear and the acceleration of renewables, I am today setting a new ambition for our country.

Far from being dependent on the global energy market and the actions of malign actors, we will make sure the UK a net energy exporter by 2040.

And my Rt Hon Friend the Business Secretary will set out a plan in the next two months to make sure we achieve this.

I know businesses and families are very concerned about how they will get through this winter.

That’s why I felt it was important to act urgently to provide immediate help and support, as well as setting out our plan about how we are going to secure the UK’s future supplies.

This is part of my vision for rebuilding our economy.

Secure energy supply is vital to growth and prosperity. Yet it has been ignored for too long.

I will end the UK’s short-termist approach to energy security and supply once and for all.

That is what I promised on the steps of Downing Street.

Today we are acting decisively to deliver that pledge.

This will help us build a stronger, more resilient and more secure United Kingdom.

I commend this motion to the House.

UK GOVERNMENT BORROWING MORE TO BOLSTER OIL COMPANY PROFITS

Environmental campaigners have reacted to the UK Government plans for an energy price freeze funded by borrowing.

The UK Government will open a new licensing round for the North Sea next week, and is expected to give out over 100 permits for companies to look for more climate-wrecking oil and gas. This is despite climate science and energy experts warning that any new oil and gas projects will push the world well past dangerous climate limits.

Independent advisors have made it clear that increasing UK supply of oil and gas will have almost no impact on UK bills as prices are set by the international market.

Liz Truss also announced that her Government will lift the moratorium on shale gas. Scotland has a de facto ban on fracking.

In the first 6 months of 2022, 5 oil companies made over £80 billion in profits: Shell £16.6bn, BP £12.2bn, Exxonmobil £21.7bn, TotalEnergies £15.2bn, Chevron £14.5bn.

Friends of the Earth Scotland’s head of campaigns Mary Church said: “The impact of measures announced today to stop the immediate rise in household bills is welcome, but the approach taken by the new Prime Minister singularly fails to address the fundamental problems of a broken energy system that serves only to enrich oil company bosses and shareholders.

“The money the UK Government is borrowing will be pumped straight into the coffers of oil companies when it could have helped deliver the transition to clean, reliable renewables. People in the UK are being robbed by fossil fuel companies but instead of making them pay for the harm they are causing, Liz Truss has decided to borrow more money to keep paying the robbers.

“This energy price crisis is being driven by the price of fossil fuels and the only sure fire to prevent this happening again is a rapid and fair transition to renewable energy and a scaling up of energy efficiency.”

+ NORTH SEA OIL & GAS LICENCES
“Burning oil and gas is driving the climate emergency that sees tens of millions displaced by floods in Pakistan and has brought extreme heatwaves and drought across the UK. The UK Government is denying the reality of climate change by encouraging companies to seek out more fuel for the fire that is engulfing the world.

“The Scottish Government must be willing to stand up to these reckless plans to expand fossil fuels and hand out more licences for oil and gas companies to explore and drill in the North Sea. Ministers at Holyrood must speak out and use all the tools at their disposal to block any plans to further lock us into the oil and gas that is driving both the climate and cost of living crises.”

+ FRACKING
“The move to try reopen and force through fracking is a disgrace. Not only is the industry incredibly harmful in climate terms it also brings with it serious local health and environmental risks. Its laughable to suggest that fracked gas will deliver within 6 months. Communities have already successfully fought and stopped it in Northern Ireland, England and Scotland so wherever this dirty dangerous industry is proposed, it will be opposed once again.”

Commenting on the proposals announced by the government today to support households and businesses with energy bills, TUC General Secretary Frances O’Grady said: “Freezing energy bills this autumn is essential for families and to protect jobs and businesses.

“But the Prime Minister is making the wrong people pay. She should have imposed a much larger windfall tax on profiteering oil and gas giants. And she should have required all firms getting help with energy bills to commit to no lay-offs for the lifetime of the help, to protect livelihoods.

“And it’s not just energy bills soaring – so she needs to do more to help families get through the winter. That means a real plan to get wages rising, a big boost to universal credit, child benefit and pensions, and a massive rollout of home improvements to cut bills. And it’s time to bring energy retail into public ownership to make sure this crisis never happens again.”

The TUC says that the government should set out a programme to make UK living standards more resilient and the UK economy more resistant to a future crisis. This should include: 

  • Increase the windfall tax to a fairer level relative to the excess profits oil and gas firms are making.
  • Rapid rollout of home energy efficiency and taking the energy retail companies into public ownership – including a new approach to energy pricing with a free band of energy to cover basic lighting, heating, hot water and cooking.
  • A plan to get pay rising for all workers – including stronger pay bargaining rights so that working people and their unions can make fair pay agreements across whole industries. 
  • Increase the minimum wage to £15 an hour as soon as possible – by returning the UK to normal wage growth and having a more ambitious minimum wage target. 
  • Social security that prevents poverty – universal credit and benefits should be raised to 80 percent of the national living wage, along with a significant boost to support for families with children.  

Commenting on the Prime Minister’s decision to end the moratorium on fracking, Tom Fyans, director of campaigns and policy at CPRE, the countryside charity, said:  ‘Giving fracking the green light is a hideous mistake.

“If the purpose is to tackle bank busting gas prices, it’s an exercise in futility. Even if we were to go full steam ahead on fracking, which nobody wants, least of all rural communities, it wouldn’t make a dent on the cost of energy anytime soon, or ever. 

‘Any move to industrialise the countryside and belch yet more fumes into our carbon-soaked atmosphere will prompt a furious response from local communities, drawn out planning delays and nationwide protests. Hardly a proposal to keep families warm this winter, or lower bills in the future. 

‘The new Chancellor got it right in March, when he said fracking “would take up to a decade to extract sufficient volumes — and it would come at a high cost for communities and our precious countryside.” Nothing has changed. 

‘Proposals to offer local people discounts on their bills in exchange for environmental destruction on their doorsteps need to be seen for what they are – a feeble attempt to bribe vulnerable rural communities to accept an unpopular, unsafe and polluting process that will destroy their tranquility. Local communities need to make their voices heard loud and clear – they were right to resist before and should continue to do so. 

‘The answer to the fossil fuel price crisis is to reduce usage with a mass insulation drive, alongside a clean energy sprint. There has never been a better time to transform our energy infrastructure to ensure a future of abundant green power. 

‘Renewables are around nine times cheaper and far quicker to plug in than any alternative. Families facing the biggest drop in living standards on record need renewable energy to become the central pillar of a modernised energy system. And they need it to happen fast.’ 

A LEADING property association has praised the Government’s package of measures to help those unable to afford rising energy costs. 

The National Association Of Property Buyers said the Prime Minister’s “swift and decisive intervention” would help many. 

Spokesman Jonathan Rolande said: “Looking at the energy and inflation crisis from the perspective of the property market, we welcome the swift and decisive intervention by the government to help households and businesses with the cost of energy by capping annual expenditure at an average of £2500.

“The impact of higher increases jeopardised so many facets of the economy it was almost impossible to over-exaggerate the terrible consequences there might have been – bankruptcies, unemployment, increased inflation, a house price crash – all were very possible.

“Bills and inflation still look set to rise. Interest rates may well do so too. But the cliff-edge has, for now, been avoided. Businesses and homeowners now have certainty about their budgets and can plan accordingly.

“There will of course be a price to pay, perhaps with higher bills or taxes in the future. But today at least, homeowners, businesses, charities and everyone in the property sector will be breathing a huge sigh of relief.”

Under proposals outlined today, a typical household energy bill will be capped at £2,500 annually until 2024.

The huge support scheme could cost up to £150bn, but Ms Truss refused to put a figure on it, saying “extraordinary times call for extraordinary measures”.

Businesses will get support, with bills capped for six months, a shorter period of protection than many had hoped for.

The help will be for everyone in England, Scotland and Wales with equivalent help for Northern Ireland.

But there are concerns the measures are not targeted enough, with no additional support for the most vulnerable. As a result, millions are still expected to be in fuel poverty this winter.

The energy price cap – the highest amount suppliers are allowed to charge households for every unit of energy they use – had been due to rise to £3,549 in October.

To limit the amount customers’ bills go up by, the government will compensate energy firms for the difference between the wholesale price for gas and electricity they pay and the amount they can charge customers.

The final cost of the scheme will depend on the cost of energy on the international energy markets, which can be extremely volatile.

The money to cover the support will be borrowed by the government, adding to the UK’s already large debt pile.

HER MAJESTY QUEEN ELIZABETH II HAS DIED

A STATEMENT from BUCKINGHAM PALACE:

The Queen died peacefully at Balmoral this afternoon.

The King and The Queen Consort will remain at Balmoral this evening and will return to London tomorrow.

A statement has been issued by the Royal Family on behalf of Charles III, the new King:

“The death of my beloved Mother, Her Majesty The Queen, is a moment of the greatest sadness for me and all members of my family.

“We mourn profoundly the passing of a cherished sovereign and a much-loved mother.

“I know her loss will be deeply felt throughout the country, the Realms and the Commonwealth and by countless people around the world.

“During this period of mourning and change, my family and I will be comforted and sustained by our knowledge of the respect and deep affection in which the Queen was so widely held.”

Prime Minister Liz Truss paid the following tribute:

We are all devastated by the news we have just heard from Balmoral. The death of Her Majesty The Queen is a huge shock to the nation and to the world.

Queen Elizabeth II was the rock on which modern Britain was built.

Our country has grown and flourished under her reign.

Britain is the great country it is today because of her.

She ascended the throne just after the Second World War.

She championed the development of the Commonwealth – from a small group of seven countries to a family of 56 nations spanning every continent of the world.

We are now a modern, thriving, dynamic nation.

Through thick and thin, Queen Elizabeth II provided us with the stability and the strength that we needed.

She was the very spirit of Great Britain – and that spirit will endure.

She has been our longest-ever reigning monarch.

It is an extraordinary achievement to have presided with such dignity and grace for 70 years.

Her life of service stretched beyond most of our living memories.

In return, she was loved and admired by the people in the United Kingdom and all around the world.

She has been a personal inspiration to me and to many Britons. Her devotion to duty is an example to us all.

Earlier this week, at 96, she remained determined to carry out her duties as she appointed me as her 15th Prime Minister.

Throughout her life she has visited more than 100 countries and she has touched the lives of millions around the world.

In the difficult days ahead, we will come together with our friends…

….across the United Kingdom, the Commonwealth and the world…

…to celebrate her extraordinary lifetime of service.

It is a day of great loss, but Queen Elizabeth II leaves a great legacy.

Today the Crown passes – as it is has done for more than a thousand years – to our new monarch, our new head of state: His Majesty King Charles III.

With the King’s family, we mourn the loss of his mother.

And as we mourn, we must come together as a people to support him.

To help him bear the awesome responsibility that he now carries for us all.

We offer him our loyalty and devotion just as his mother devoted so much to so many for so long.

And with the passing of the second Elizabethan age, we usher in a new era in the magnificent history of our great country, – exactly as Her Majesty would have wished – by saying the words … God save the King.

Flags are flying at half-mast on all Scottish Government buildings, and on behalf of the people of Scotland, First Minister Nicola Sturgeon has sent a message of condolence to the new King and other members of the Royal Family.

First Minister Nicola Sturgeon said: “Her Majesty The Queen gave decades of her life in service and has died today here in Scotland as our longest-serving monarch.

“Our condolences are with The King, The Queen Consort and the wider Royal Family. Millions around the world will share their grief but only they will feel the loss of a mother and grandmother.

“The Queen was unflinching in her dedication to duty, unwavering in her commitment to public service and unmatched in her devotion to the people of this country and the wider Commonwealth.

“We are all saddened by today’s news and will come together in the days ahead to mourn. But it is right and proper that we celebrate the unparalleled contribution she made in her 70 years as Sovereign.

“The Queen came to the throne following the Second World War, reigned through decades of social change and lived to be the monarch who opened our Scottish Parliament in the age of devolution.

“Largely through her belief in the value of diverse nations coming together to celebrate humanity, The Queen played a leading role in creating the modern Commonwealth – 53 countries across six continents working together.

“Scotland was special to her and she was special to Scotland. Throughout her life, she had a particular fondness for Aberdeenshire and her home there at Balmoral, where she spent her final days.

“But her contribution to Scottish public life extended throughout our country and abroad and was deeply felt by thousands.

“In the coming days there will be ample opportunity for people to pay their respects by attending events across the country.

“Today is a day for reflection and remembrance. It is also a day for giving thanks to The Queen for her devotion to duty and the decades of public service she gave to the people of Scotland.”

The royal household’s representative in Edinburgh, the Lord Lieutenant Robert Aldridge, has led Edinburgh’s tributes to the Queen following the news of her death from Buckingham Palace today.

The Lord Provost said: “Throughout HM the Queen’s extraordinary reign, she showed great appreciation for her ancient and hereditary kingdom of Scotland. During her countless visits to Edinburgh, she reached out to our charities, veterans, serving personnel, hospitals and children and won a very special place in the hearts of Scottish people.  

“Over her seven-decade reign, she has shown unwavering and inspirational dedication to the nation and I pay tribute to her years of service. I’m sure her legacy will be special and longstanding.  

“I had the pleasure of meeting her in June at our historic Ceremony of the Keys and it has been my privilege and honour to be her personal representative in Edinburgh. To many she is the nation’s mother and grandmother and it is with great sadness that I convey, on behalf of the Scottish capital, our heartfelt sympathies and condolences to all the members of the royal family at this very sad time. 

“Queen Elizabeth II, born Elizabeth Alexandra Mary in London on April 21 1926, ascended to the throne in 1952.

“She became the longest-reigning British monarch in history when she opened the Borders Railway line 9 September 2015, where she was greeted and congratulated by (then) Lord Provost, Donald Wilson.
 
“On that day in an address to the people of Scotland, the Queen said: “Inevitably, a long life can pass by many milestones; my own is no exception. But I thank you all and the many others at home and overseas, for your touching messages of great kindness.” 

LOCAL MSP Alec Cole-Hamilton said: “Her Majesty Queen Elizabeth II has been a bedrock of and grace in the life of our nation. Her constancy and devotion to the people of these islands have carried us through many dark times.

“I share the sentiment of grief and the profound sense of gratitude felt by so many tonight”.

LABOUR Party leader Sir Keor Starmer said: “Today we mourn the passing of a remarkable sovereign. It is a deep private loss for the Royal Family and our first thoughts are with them at this time. The nation shares in their grief.

Queen Elizabeth II created a special, personal relationship with us all. A relationship based on service and devotion to her country. Nobody under the age of 70 has known anything other than Queen Elizabeth II on the throne. For the vast majority of us, the late Queen has been simply the Queen. The only Queen. Above all else, our Queen.

As we mourn her loss, we should also treasure her life. Our longest-serving and greatest ever monarch. Above the clashes of politics, she stood not for what the nation fought over but what it agreed upon. In crisis, she reassured us. Reminding us that we are all part of something that stretches back through time. A symbol of the best of us. I saw it for myself when I led the Crown Prosecution Service.

Every time I had the privilege to meet the late Queen, she would ask the most searching questions because she wanted to understand the lives and struggles of her people. And as Britain changed rapidly around her, this dedication became the still point of our turning world. An example that taught us that whatever the challenges we face, the value of service always endures.

And the obvious love the late Queen displayed for Britain, the British people gave back in return. That is why there is such an outpouring of grief across the nation today. As there is across the Commonwealth to which the late Queen was so devoted.

Around the world, people are united in mourning. And united in celebrating her life. This togetherness is a reminder of what she achieved. A reminder of our shared values. Values which I know will be upheld by her beloved son, Charles, our new King.

So as our great Elizabethan era comes to an end, we will honour the late Queen’s memory by keeping alive the values of public service she embodied.

For seventy years, Elizabeth II stood as the head of our country. But, in spirit, she stood amongst us.

Truss: I am determined to deliver

Prime Minister Liz Truss’s statement on the steps of Downing Street:

Good afternoon,

I have just accepted Her Majesty The Queen’s kind invitation to form a new government. 

Let me pay tribute to my predecessor.

Boris Johnson delivered Brexit, the Covid vaccine, and stood up to Russian aggression.

History will see him as a hugely consequential Prime Minister.

I’m honoured to take on this responsibility at a vital time for our country.

What makes the United Kingdom great is our fundamental belief in freedom, in enterprise, and in fair play.

Our people have shown grit, courage and determination time and time again.

We now face severe global headwinds caused by Russia’s appalling war in Ukraine and the aftermath of Covid.

Now is the time to tackle the issues that are holding Britain back.

We need to build roads, homes and broadband faster.

We need more investment and great jobs in every town and city across our country.

We need to reduce the burden on families and help people get on in life.

I know that we have what it takes to tackle those challenges.

Of course, it won’t be easy. But we can do it.

We will transform Britain into an aspiration nation…with high-paying jobs, safe streets and where everyone everywhere has the opportunities they deserve.

I will take action this day, and action every day, to make it happen.

United with our allies, we will stand up for freedom and democracy around the world – recognising that we can’t have security at home without having security abroad.

As Prime Minister, I will pursue three early priorities.

Firstly, I will get Britain working again.

I have a bold plan to grow the economy through tax cuts and reform.

I will cut taxes to reward hard work and boost business-led growth and investment.

I will drive reform in my mission to get the United Kingdom working, building, and growing.

We will get spades in the ground to make sure people are not facing unaffordable energy bills and we will also make sure, that we are building hospitals, schools, roads, and broadband.

Secondly, I will deal hands-on with the energy crisis caused by Putin’s war.

I will take action this week to deal with energy bills and to secure our future energy supply.

Thirdly, I will make sure that people can get doctors’ appointments and the NHS services they need. We will put our health service on a firm footing.

By delivering on the economy, on energy, and on the NHS, we will put our nation on the path to long-term success.

We shouldn’t be daunted by the challenges we face.

As strong as the storm may be, I know that the British people are stronger.

Our country was built by people who get things done.

We have huge reserves of talent, of energy, and determination.

I am confident that together we can:

Ride out the storm,

We can rebuild our economy,

And we can become the modern brilliant Britain that I know we can be.

This is our vital mission to ensure opportunity and prosperity for all people and future generations. I am determined to deliver. Thank you.

CABINET APPOINTMENTS:

  • The Rt Hon Elizabeth Truss MP as Prime Minister, First Lord of the Treasury, Minister for the Civil Service, and Minister for the Union
  • The Rt Hon Dr Thérèse Coffey MP as Secretary of State for Health and Social Care. She will also be Deputy Prime Minister (below).
  • The Rt Hon Kwasi Kwarteng MP as Chancellor of the Exchequer
  • The Rt Hon James Cleverly MP as Secretary of State for Foreign, Commonwealth and Development Affairs
  • The Rt Hon Suella Braverman QC MP as Secretary of State for the Home Department
  • Wendy Morton MP as Parliamentary Secretary to the Treasury (Chief Whip). She will attend Cabinet
  • The Rt Hon Ben Wallace MP has been re-appointed as Secretary of State for Defence
  • The Rt Hon Brandon Lewis CBE MP as Lord Chancellor, and Secretary of State for Justice
  • The Rt Hon Nadhim Zahawi MP as Chancellor of the Duchy of Lancaster, Minister for Intergovernmental Relations and Minister for Equalities
  • The Rt Hon Penny Mordaunt MP as Lord President of the Council, and Leader of the House of Commons
  • Lord True CBE as Lord Privy Seal, and Leader of the House of Lords
  • The Rt Hon Jake Berry MP as Minister without Portfolio
  • The Rt Hon Alok Sharma MP has been re-appointed as COP26 President
  • The Rt Hon Jacob Rees-Mogg MP as Secretary of State for Business, Energy and Industrial Strategy
  • The Rt Hon Simon Clarke MP as Secretary of State for Levelling Up, Housing and Communities
  • Kemi Badenoch MP as Secretary of State for International Trade and President of the Board of Trade
  • Chloe Smith MP as Secretary of State for Work and Pensions
  • The Rt Hon Kit Malthouse MP as Secretary of State for Education
  • Ranil Jayawardena MP as Secretary of State for Environment, Food and Rural Affairs
  • The Rt Hon Anne-Marie Trevelyan MP as Secretary of State for Transport
  • The Rt Hon Michelle Donelan MP as Secretary of State for Digital, Culture, Media and Sport
  • The Rt Hon Chris Heaton-Harris MP as Secretary of State for Northern Ireland
  • The Rt Hon Alister Jack MP has been re-appointed as Secretary of State for Scotland
  • The Rt Hon Sir Robert Buckland KBE QC MP has been re-appointed as Secretary of State for Wales
  • Chris Philp MP as Chief Secretary to the Treasury. He will attend Cabinet
  • Rt Hon Michael Ellis QC MP as Attorney General. He will attend Cabinet
  • Edward Argar MP as Paymaster General and Minister for the Cabinet Office. He will attend Cabinet
  • Vicky Ford MP as a Minister of State (Minister for Development) in the Foreign, Commonwealth and Development Office. She will attend Cabinet
  • Tom Tugendhat MBE MP as a Minister of State (Minister for Security) in the Home Department. He will attend Cabinet
  • James Heappey MP has been re-appointed as a Minister of State in the Ministry of Defence. He will be Minister for the Armed Forces and Veterans and will attend Cabinet.
  • Graham Stuart MP as a Minister of State (Minister for Climate) in the Department for Business, Energy and Industrial Strategy. He will attend Cabinet.

That’s All, Folks: Bye bye, Boris!

Boris Johnson gave his final speech as Prime Minister on the steps of Downing Street

Well this is it folks, thanks to all of you for coming out so early this morning.

In only a couple of hours from now I will be in Balmoral to see Her Majesty The Queen and the torch will finally be passed to a new Conservative leader: the baton will be handed over in what has unexpectedly turned out to be a relay race – they changed the rules half-way through but never mind that now – and through that lacquered black door a new Prime Minister will shortly go to meet a fantastic group of public servants.

The people who got Brexit done

the people who delivered the fastest vaccine roll out in Europe

and never forget – 70 per cent of the entire population got a dose within 6 months, faster than any comparable country

That is government for you – that’s this Conservative government – the people who organised those prompt early supplies of weapons to the heroic Ukrainian armed forces, an action that may very well have helped change the course of the biggest European war for 80 years.

And because of the speed and urgency of what you did – everybody involved in this government – to get this economy moving again from July last year in spite of all opposition, all the naysayers we have and will continue to have that economic strength to give people the cash they need to get through this energy crisis that has been caused by Putin’s vicious war.

And  I know that Liz Truss and this compassionate Conservative government will do everything we can to get people through this crisis.

And this country will endure it and we will win.

And if Putin thinks that he can succeed by blackmailing or bullying the British people then he is utterly deluded and the reason we will have those funds now and in the future is because we Conservatives understand the vital symmetry between government action and free market capitalist private sector enterprise.

We are delivering on those huge manifesto commitments:

making streets safer – neighbourhood crime down 38 per cent in the last three years

13,790 more police on the streets

building more hospitals – and yes we will have 50,000 more nurses by the end of this parliament and 40 more hospitals by the end of the decade

putting record funding into our schools and into teachers’ pay

giving everyone over 18 a lifetime skills guarantee so they can keep upskilling throughout their lives

3 new high speed rail lines including northern powerhouse rail

colossal road programmes from the Pennines to Cornwall,

the roll-out of gigabit broadband up over the last three years, since you were kind enough to elect me, up from 7 per cent of our country’s premises having gigabit broadband to 70 per cent today.

And we are of course providing the short and the long term solutions for our energy needs – and not just using more of our own domestic hydrocarbons but going up by 2030 to 50 GW of wind power, that is half this country’s energy electricity needs from offshore wind alone, a new nuclear reactor every year.

And looking at what is happening in this country, the changes that are taking place: that is why the private sector is investing more venture capital investment than China itself, more billion pound tech companies sprouting here than in France, Germany and Israel combined and as a result unemployment as I leave office, down to lows not seen since I was about ten years old and bouncing around on a space hopper.

And on the subject of bouncing around and future careers let me say that I am now like one of those booster rockets that has fulfilled its function and I will now be gently re-entering the atmosphere and splashing down invisibly in some remote and obscure corner of the pacific.

And like Cincinnatus I am returning to my plough and I will be offering this government nothing but the most fervent support.

this is a tough time for the economy, this is a tough time for families up and down the country – we can and we will get through it and we will come out stronger the other side – but I say to my fellow Conservatives it is time for the politics to be over folks and it’s time for us all to get behind Liz Truss and her programme and deliver for the people of this country.

Because that is what the people of this country want, that’s what they need and that’s what they deserve.

I am proud to have discharged the promises I made my party when you were kind enough to choose me,

winning the biggest majority since 1987 and the biggest share of the vote since 1979.

delivering Brexit

delivering our manifesto commitments – including social care

helping people up and down the country

ensuring that Britain is once again standing tall in the world

speaking with clarity and authority

from Ukraine to the AUKUS pact with America and Australia

because we are one whole and entire United Kingdom whose diplomats, security services and armed forces are so globally admired

and as I leave I believe our union is so strong that those who want to break it up, will keep trying but they will never ever succeed

thank you to everyone behind me in this building for looking after me and my family over the last three years so well including Dilyn, the dog

and if Dilyn and Larry (the Downing Street dog and cat)can put behind them their occasional difficulties, then so can the Conservative party.

And above all thanks to you, the British people, to the voters for giving me the chance to serve all of you who worked so tirelessly together to beat covid to put us where we are today.

Together we have laid foundations that will stand the test of time, whether by taking back control of our laws or putting in vital new infrastructure: great solid masonry on which we will continue to build together, paving the path of prosperity now & for future generations.

And I will be supporting Liz Truss and our new government every step of the way.

Thank you all very much.

Scottish Secretary Alister Jack formally opens Queen Elizabeth House

HM Revenue and Customs’ (HMRC) Edinburgh Regional Centre and UK Government hub was formally opened yesterday (1 September 2022) by Secretary of State for Scotland, Alister Jack MP.

Mr Jack unveiled a plaque at the flagship office, named Queen Elizabeth House, alongside HMRC’s Chief Executive and First Permanent Secretary, Jim Harra. Among those also attending the event were Scotland Office Director, Laurence Rockey, and the Advocate General for Scotland, Lord Stewart of Dirleton QC.

The state-of-the-art building at 1 Sibbald Walk is home to around 2,200 full-time equivalent (FTE) HMRC staff and around 640 civil servants from 24 other UK Government departments and agencies. Departments sharing the building with HMRC include the Scotland Office, Office of the Advocate General for Scotland and Department for International Trade.

The seven-storey UK Government Hub initially opened its doors to some civil servants during the pandemic on 1 September 2020 and on its second anniversary, the building has now formally been declared open.

Staff working from the site have already made a huge contribution to the country by working on the on the Coronavirus Job Retention Scheme (CJRS) which helped protect more than 910,000 jobs in Scotland, including 87,500 jobs in Edinburgh.

Alister Jack MP, Secretary of State for Scotland, said: “It’s a privilege to officially open Queen Elizabeth House, the UK Government’s state-of-the-art hub in the heart of Edinburgh.

“This flagship building will provide a base for more than a dozen UK Government departments which all have a key role in Scotland. 

“It is a fantastic facility and a huge asset as we engage with stakeholders, invest in communities and serve the people of Scotland.” 

Jim Harra, HMRC’s Chief Executive and First Permanent Secretary, said: “It has been fantastic to finally celebrate the official opening of our Edinburgh Regional Centre and UK Government hub today.

“This modern development promotes an inclusive working environment and is an important part of HMRC’s transformation into a digitally-advanced tax authority.

“Queen Elizabeth House provides HMRC a greater opportunity to work closely with other UK Government departments to deliver our priorities such as supporting families through the cost-of-living crisis.”

HMRC also has a regional centre in Glasgow and a specialist site at Gartcosh. Earlier this year, the department announced they would retain a long-term presence in East Kilbride, which will become Phase 2 of the Glasgow Regional Centre.

External image: Hufton & Crow

First steps towards recovery as the Festival Fringe comes to a close

TICKET SALES SLUMP BY A QUARTER

The 2022 Edinburgh Festival Fringe draws to a close today having brought together artists, international arts industry and media, and both loyal Fringe fans and new audiences. 

After some of the most challenging years on record for the sector, the hard work and effort of the artists, venues, producers, promoters, arts and media industry, and staff should be recognised and celebrated.

The lead up brought with it understandable anxiety, as Fringe-makers took on the risk and uncertainty of returning in a year like no other. Audience patterns have changed, industrial action caused significant disruption to rail travel and refuse collection, and affordable accommodation in Edinburgh was at crisis point. This year’s festival has been a colossal and collective effort.

We recognise and thank the residents and businesses of Edinburgh and the Lothians, home to the Fringe for the last 75 years. Residents of our historic city accounted for 39% of all tickets issued (+4% on 2019), and their support and commitment to the festival is evident.  Overseas audience attendances also increased, accounting for 10% of all tickets issued (+2% on 2019).

While the number of tickets issued is testament to the commitment of those who put on the shows and the audiences who came to see them, far beyond what we could have imagined at the start of the year.

The growing cost of Edinburgh for artists points to the need for long-term recovery, investment, and support to ensure the sustainability and longevity of one of the world’s most important cultural events.

Some clear challenges have emerged, and we need a collective approach to address these, or the future of this long-running beacon for cultural connection and development will be in jeopardy.

This year’s Fringe saw an estimated 2,201,175 tickets issued across 3,334 shows which were performed by artists from 63 countries. The festival welcomed diverse work from Scotland, the UK, Europe and the rest of the world, with 13 showcases including work from Canada, Finland, Belgium, Taiwan, South Korea, Ireland – North and South, Denmark and Australia.

The 2022 programme tackled themes and issues such as mental health, gender and gender identity, neurodiversity, disability, feminism, lockdown, experience of migration, LGBTQ+, politics, race and racial identity and work for children; with upcoming talent showcased alongside well-known performers and international work.

The Street Events programme was extended into new sites, with 3,284 performances by Street Performers across the programme.  These included 650 Taster Stage slots on new sites in St Andrew Square and Cathedral Square in St James Quarter.  170 shows were represented, with five additional slots given to community groups and schools.   

Over 35 professional development events for Fringe participants were delivered in partnership with 16 external organisations in Fringe Central, our dedicated centre for artists at the heart of the Fringe, and on Fringe Connect, our online home for artists.

The Arts Industry office accredited 1,354 producers, programmers, bookers, talent agencies, festivals and others from 45 countries, looking to find work, tour it and support artists beyond the festival itself. They were joined by over 770 of the world’s media, and 147 delegates who participated in Screen Fringe.

The communities, learning and access team worked on a number of key initiatives, including loaning out 150 sensory backpacks for autistic children and adults.  BSL interpretation took place in West Parliament Square on five days of the festival, and a dedicated Changing Places toilet was located beside George Square.

The Society worked with over 30 Edinburgh charities and community groups to distribute over £60,000 of Fringe vouchers and Lothian bus tickets, enabling residents from across the city to experience the festival, many for the very first time.  In addition, over 900 schoolchildren came to the Fringe as part of our schools’ outreach work.

Shona McCarthy, CEO of the Edinburgh Festival Fringe Society, said: “Our enormous congratulations go out to everyone who came together to create the 2022 Edinburgh Festival Fringe. 

“This year’s festival is the first step in what will be a long road to recovery and renewal.  The hard work of thousands of artists, and hundreds of venues, producers and staff has combined to deliver the 75th anniversary festival during one of the most challenging summers on record.

“We recognise the significant amount of work that is still required to support the long-term sustainability of this phenomenal Festival.  As we review and discuss all the learnings from this year, our focus this autumn will be on planning for the 2023 Edinburgh Fringe.  

“Collectively we will work to advocate for greater support for those at the heart of the Fringe – our artists.  The eyes of the world look to this historic city every August, and we need to work together to ensure the Fringe is the best place for creatives to express their ideas, audiences to support them and for people across the sector to develop their skills and careers for the next 75 years.”

Benny Higgins, Chair of the Edinburgh Festival Fringe Society, added: I add my congratulations to those that worked tirelessly this August to deliver the 75th anniversary of the Edinburgh Festival Fringe.  The importance of this festival cannot be underestimated.  Artists use the Fringe as a place to perform, connect and springboard onto their next career opportunity. 

“Recovery takes time, and that is why in June we launched our future development goals.  The Society acts to offer anyone a stage and everyone a seat, and there is much to do in the coming months.  We need to ensure the Fringe is the best place for thriving artists, while ensuring fair work and good citizenship. 

“Our digital experience will be key to delivering our climate action targets, and we need to do more to ensure who you are, and where you’re from, is not a barrier to attending or participating in the Fringe.

As a charity, the work of the Edinburgh Festival Fringe Society would not be possible without the valuable support of our partners, sponsors and funders.

We are hugely grateful to the support of partners City of Edinburgh Council, EventScotland, Creative Scotland, The Scottish Government, British Council, the Department for Culture, Media and Sport, St James Quarter and Nuveen. 

Our thanks to sponsors TikTok, Johnnie Walker Princes Street, Edinburgh Gin and Cirrus Logic. Our continued appreciation also to our Fringe Angels, Patrons, Friends and supporters who help make the Fringe happen each year.

Next year’s Edinburgh Festival Fringe will run from 04 – 28 August 2023.

£1.5 million from UK to assist Pakistan flood relief efforts

The UK is providing urgent support to Pakistan after flooding in the south of the country killed at least 900 people. Extreme monsoon rainfall has affected millions, with at least 700,000 homes destroyed.

In response to the disaster, the UK will provide up to £1.5 million for the relief effort. The UN is carrying out a needs assessment over the weekend, and a UN appeal is expected to be launched on Tuesday.

Lord Tariq Ahmad of Wimbledon, Minister of State for South and Central Asia, North Africa, UN and the Commonwealth and the Prime Minister’s Special Representative on Preventing Sexual Violence in Conflict, said: “The floods in Pakistan have devastated local communities and the UK is providing up to £1.5 million to help the immediate aftermath. We are witnessing the catastrophe that climate change can cause and how it impacts the most vulnerable.

“My thoughts and prayers are with all the victims and their families, and I would like to pay tribute to everyone involved in the relief efforts. We are also working directly with the Pakistan authorities to establish what further assistance and support they require. The UK stands with the people of Pakistan during this time of need.”

The UK also provides assistance to Pakistan through international organisations working directly with the victims of the disaster, including the World Bank and the United Nations.

Johnson: I’m convinced Britain’s bounceback will be golden

The months ahead are going to be tough, perhaps very tough (writes Prime Minister BORIS JOHNSON). Our energy bills are going to be eye-watering. For many of us, the cost of heating our homes is already frightening.

And yet I have never been more certain that we will come through this well – and that Britain will emerge stronger and more  prosperous the other side.

 Let us remember who caused this global surge in the cost of energy, and what is at stake.

Yes, we were already seeing  supply chain pressures last year, caused by the aftershocks of Covid, and that was causing a rise in some global prices.

But by the end of last year we were fixing it. The world was finding the lorry drivers. The  container ships were moving. We were sourcing the silicon chips.

What no one had bargained for was the decision of Vladimir Putin – and it was his decision alone – to launch a vicious and irrational attack, on February 24, against an innocent European country.

It was Putin’s barbaric invasion that spooked the energy markets.

It is Putin’s war that is costing British consumers. That is why your energy bill is doubling. I am afraid Putin knows it. He likes it. And he wants us to buckle.

 He believes that soft European politicians will not have the  stomach for the struggle – that this coming winter we will throw in the sponge, take off the sanctions and go begging for Russian oil and gas.

He believes we will tire of backing Ukraine and begin discreetly to encourage the Ukrainians to do a deal, however nauseating, with the tyrant in the Kremlin.

That would be utter madness. In this brutal arm-wrestle, the Ukrainian people can and will win. And so will Britain.

With every month that goes by Putin’s position grows weaker. His ability to bully and blackmail is diminishing. And Britain’s position will grow stronger.

We must and we will help people through the crisis. Colossal sums  of taxpayers’ money are already committed to helping people pay their bills. That cash is flowing now – and will continue to flow in the months ahead.

Another chunk of the £650 is already due to go to the eight million most vulnerable households this autumn. There is another £300 going to  pensioners in November, £150 for the disabled and £400 for all energy bill payers.

Next month – whoever takes over from me – the Government will announce another huge package of financial support. It is worth remembering why we are in a position to make these payments.

We have the cash to support  families across the country because we have already proved the  pessimists wrong. 

I remember sitting in the Cabinet room for an economic briefing in 2020 as the waves of the pandemic broke over the world and we saw the biggest drop in output for 300 years. They told me UK unemployment would top 14 per cent.

They said that millions would be thrown on to the economic scrapheap – with all the consequent costs to the Exchequer.

They were wrong. After becoming the first country in the world to approve an effective vaccine, we staged the fastest vaccine roll-out in Europe, the fastest exit from Covid. As a result we had the fastest growth in the G7 last year and instead of mass unemployment we have about 640,000 MORE people in payrolled employment than before the pandemic began.

Instead of being at 14 per cent, unemployment is at 3.8 per cent, nearly the lowest for almost 50 years. That is giving us the fundamental economic strength to endure this crisis – as the Russian economy continues to melt down.

We are ending our dependency on Russian hydrocarbons. In June, for the first time in decades, we did not import any fuel from Russia. The UK has already stepped up production of domestic gas – 26 per cent more this year than last.

With every new windfarm we build offshore, with every new nuclear project we approve, we strengthen our strategic position. We become less vulnerable to the vagaries of the global gas price and less vulnerable to Putin’s pressure.

It is this Government that has reversed the apathy of decades and greenlighted new nuclear plants.

We are going to build a new  reactor every year and will have a colossal 50 gigawatts of offshore wind by 2030 – almost half our total electricity consumption.

This British Energy Security Strategy is just a part of a vast  programme to make the economy more productive and competitive. 

In just three years we have increased the coverage of gigabit broadband from seven per cent of households to 70 per cent. We are strengthening the economic sinews of the country with the biggest investment in rail – three new high speed lines – for a century.

We have invested massively in skills, so that people can improve their qualifications throughout their lives.

We have taken decisive steps to make this the best place in the world to invest and start a business. We are axing dozens of burdensome EU laws – including Solvency 2 and MiFID, that acted as unnecessary deterrents to investment.

We are creating eight new free- ports, cutting taxes on investment and lengthening our lead as  a science superpower – with  £22billion of investment in science and a new Advanced Research agency to crack the big problems of our time, from dementia to zero carbon aviation.

All this is paying off in jobs and growth. In the first quarter of  this year the UK attracted more venture capital investment in technology than China.

We have more tech investment than France, Germany and Israel combined and we produce a new billion pound “unicorn” company roughly every two weeks.

These new ideas are blooming not just in the golden triangle of Oxford, Cambridge and London but across the whole UK as we drive forward our levelling up agenda.

We have laid the foundations for long-term gains in prosperity and productivity. We know we will bounce back from the crisis in the cost of energy as we rapidly build up our own UK supplies.

That is why we will succeed and why we cannot flinch now.

If Putin is allowed to get away with his murder and mayhem, and to change the borders of Europe by force, then he will simply do it again, elsewhere on the periphery of the former Soviet Union.

Other countries will draw the  lesson that violence and aggression can pay off and that will usher in a new cycle of political and economic instability.

That is why we must continue to back the Ukrainians – and their military success continues to be remarkable. Volodymyr Zelenskyy has shown his country is fundamentally unconquerable.

Now is the time for the West to double down our support, not to go wobbly.

We have more than enough resilience to get through tough months ahead. We have shown that before.

And we have made the long term decisions – including on domestic energy supply – to ensure that our bounceback can and should be remarkable and that our future will be golden.

Community support funding announced for people of Liverpool

The Home Secretary has announced a £150,000 package to support the communities of Liverpool and Knowsley in the wake of the tragic shootings in the city. This will provide specialist trauma informed support in nearby schools, as well as mental health provisions for those closely affected.

Following the horrific killings of Sam Rimmer, Ashley Dale and Olivia Pratt-Korbel in Merseyside within a week of each other, the Home Secretary also announced £350,000 to expand the ‘Clear, Hold, Build’ pilot to other areas in Merseyside affected by Serious and Organised Crime.

The pilot sees both a proactive policing response and multi-agency working to support communities worst affected by Organised Crime Groups to make them more resilient and less susceptible to their activities.

Home Secretary Priti Patel said: “The whole country has been appalled at the spate of violence in Liverpool over the past couple of weeks, which has tragically left 9 people dead, including 9 year old Olivia.

The impact on the wider community is immense, which is why we are providing funding for specialist trauma and mental health support for those who need it, as well as expanding the ‘Clear, Hold, Build’ pilot to disrupt Merseyside’s corrosive and deadly Organised Crime Groups.

We will stop at nothing to drive down serious violence and ensure that fewer families have to endure the pain of losing a loved one in this way.

Established in the Birkenhead area of Merseyside in January 2022, the pilot has focused on making sustainable reductions in firearms and knife crime offences, whilst improving community confidence and delivering preventative programmes to over 2,000 young people in the area.

Priti Patel made the announcement on a visit to Liverpool on Friday where she met with Merseyside Police’s Chief Constable, to receive an update on the investigation, and then with the local policing commander to understand the impact the violence has had on the community and what resilience plans are being put in place.

Over one million families claiming tax credits to receive first Cost of Living Payment from 2 September

Around 1.1 million claimant families receiving tax credits will get their first Cost of Living Payment from Friday 2 September 2022, HM Revenue and Customs (HMRC) has confirmed.

This £326 UK Government payment will be paid automatically into eligible tax credit-only customers’ bank accounts between 2 and 7 September 2022. The first HMRC payments will total around £360 million.

Nadhim Zahawi, Chancellor of the Exchequer, said: “I know people are really concerned by rising prices so I’m glad that over a million more low earners will shortly receive their first Cost of Living Payment. We are also preparing options for further support so the new Prime Minister can hit the ground running.

“Alongside £400 off most people’s energy bills, tax cuts and the Household Support Fund, these direct payments are a very important part of our £37 billion package of help for households, which is targeted at those who need it most.”

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “This first Cost of Living Payment will provide vital financial support for eligible tax credit-only claimants across the UK. A second payment will be made to eligible customers from the winter.

“The money will be paid automatically into bank accounts, so people don’t need to do anything to get this extra help.”

These latest payments mean that more than eight million eligible households in receipt of a means-tested benefit will have received the first of two automatic Cost of Living payments of £326 from 14 July.

The second means-tested payment of £324 will be issued later this year – from the autumn for DWP benefit claimants, and from the winter for tax credit-only customers.

Tax credit claimants who also receive benefits from the Department for Work and Pensions will have already received their first Cost of Living Payment from July 2022.

The Cost of Living payments from the UK Government are part of a £37 billion package of support, which will see millions of low-income households receive at least £1,200 this year to help cover rising costs.

As well as the Cost of Living Payment, other UK Government support includes:

  • £400 discount from the government to help with the cost of energy bills from October onwards    
  • £300 Pensioner Cost of Living Payment that will be paid alongside Winter Fuel Payments  
  • £150 Disability Cost of Living Payment from 20 September for those receiving an eligible UK disability benefit.

This is all in addition to changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants; a rise in the National Living Wage to £9.50 an hour; and a tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.

The UK Government is offering help for households. Customers should check GOV.UK to find out what cost of living support they could be eligible for.