Liz Truss’s New Game Plan: Energy Bills, Taxes, and a Pinch of Panic
What’s on the Menu?
Liz Truss has done the classic “let’s fix everything I can promise” trick. She talks about slashing taxes and kicking up the basic rate threshold, all while hinting at giving households a lifeline from the rising energy war. The details? Well, they’re still ah‑hmmm‑ting in the fog.
That one “big” promise
- Tax Cuts: Say goodbye to Rishi Sunak’s 1.25% National Insurance for the “plain Jane” taxpayers. Possible, but only for those sticking to the basic rate.
- Higher Threshold: Think about an £80,000 limit – a billboard from Boris Johnson’s 2019 campaign that never turned into reality. Still, if it did, it’d be a nice nudge.
- Corporate Relief: Kronos on “cutting back the looming 25% corporation tax hike.” That could help SMEs brace for tomorrow, but they’re facing today’s bills.
Why Businesses Are Shivering
The hardest hit? Pubs, restaurants, hair salons, and that quirky café on the corner. Many are looking at energy bills that have jumped up to 500% from before. They’re still in a mild winter, but prices are already making the cold feel like ice cream in a broken freezer.
Simon Rothenberg’s Take
From Blick Rothenberg, a leading tax advisory firm, Simon Rothenberg weighs in. He says:
- “We’re not seeing immediate rescue plans. The economy’s big picture is on the sidelines.
- “High streets will sing a sad tune. Without targeted help, small shops could close before the holiday shopping.
The Budget’s On the Way
Truss is expected to unveil a full fledged budget in the coming weeks. The hopes are high: lower energy costs for households and a cost‑of‑living relief that won’t do the Treasury an awful lot of favour. But, let’s be honest – real fixes, that wind‑in‑your‑hair kind of help, might still be a ways off.
What We Should Look For
- Concrete caps on energy prices.
- Broad‑based tax cuts that actually hit the people, not just the top dogs.
- Immediate grants for small retail and hospitality establishments.
So, while Truss has a lot of promises on her plate, it’ll take more than sweet talk to keep the old high streets from bowing down. Keep your eyes on the budget, because the real tricks of the trade may just be around the corner.
