UK PM Truss rules out windfall tax to fund energy bill freeze, to lay out support package proposals

In response to questions from lawmakers on Wednesday, the new British Prime Minister Liz Trusssaid she would not impose a windfall tax to pay for any energy bill freeze intended to counteract sharp increases in the prices of gas and electricity.

Truss, who officially took over from Boris Johnson on Tuesday, stated that she would lay out her proposals for an economic support package on Thursday in order to prevent a crisis from worsening over the coming months.

She is apparently contemplating measures worth up to £130 billion ($150 billion) to freeze energy costs for struggling homes and businesses, many of which run the risk of going bankrupt this winter.

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But when opposition Labour Party leader Keir Starmer questioned whether this would be paid for by a windfall tax on the earnings of energy corporations, Truss replied, "I am against a windfall tax."

"I believe it is the wrong thing to be putting companies off investing in the United Kingdom, just when we need to be growing the economy."

"This country will not be able to tax its way to growth," she continued.

With inflation already in double digits and at 40-year highs, the exchange set the tone for the discussion on how to deal with the anticipated economic hardship in the future.

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Truss ran for office on a platform of tax cuts, despite concerns that they might increase inflation and uncertainties over how to pay for them.

As Truss entered Downing Street on Tuesday for the first time as PM, she was optimistic about the future of the economy.

I have faith that we can weather this storm together, she remarked.

However, Starmer claimed that common people would have to pay for her policies.

(with inputs from agencies)