Liz Truss to hold mini-budget before the end of the month

Details of the tax cuts promised by Prime Minister Liz Truss during the Tory leadership campaign are set to be announced later this month.

Politics as normal has been largely put on hold during the 10-day period of mourning for the Queen, which lasts until her funeral.

On Monday, the Prime Minister’s official spokesman said the Government still intends to hold the “fiscal event” before the end of the month, as previously promised by the new Prime Minister.

Ms Truss promised an emergency budget during the leadership contest, and in her speech to MPs last week she said Kwasi Kwarteng, the chancellor, would be making a “fiscal statement” later this month.

No date has yet been confirmed amid the continuing cost-of-living crisis.

The spokesman told reporters: “We are still planning to deliver a fiscal event this month.”

Ms Truss had announced last week long-awaited Government plans to tackle sky-high energy bills and ease the cost-of-living crisis, with a focus on capping prices and boosting domestic energy supplies.

That includes lifting the ban on fracking and new licences for North Sea oil and gas, as well as stating support for clean energy sources including nuclear, wind and solar.

Chancellor Kwasi Kwarteng is due to give specifics of how the plan will be funded during the emergency fiscal announcement.

Window

The Government has a narrow window to schedule the fiscal event, with the Commons due to go into conference recess on September 22.

Currently, there are no plans to amend that date.

The Liberal Democrats have cancelled their party conference, which would have clashed with the Queen’s funeral.

Labour and the Conservatives are expected to still hold their conferences, even if the annual events are likely to be more low key this year.

Under the Government’s “energy price guarantee”, bills for the average household will go no higher than £2,500 at any point over the next two years.

It will save a typical home around £1,000 from October 1, when the current consumer price cap had been set to soar, according to official estimates.

Passing legislation is not believed to be required to bring the price guarantee into effect for households, although businesses are still facing a wait for details about additional support.

“There isn’t a date set for the business support element of the guarantee. Obviously, we’re working that through. It hasn’t been impacted by the mourning period, as I understand,” the Prime Minister’s spokesman said.