Truss still planning spending review to set out cost of living crisis energy bills plan

Prime Minister Liz Truss will still set out her plans to tackle the cost of living crisis this month, after the Queen's death, No10 has confirmed.

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

But Downing Street said the PM will still set to hold a "fiscal event" to set out her plans in more detail within weeks.

Ms Truss had unveiled her government's plan to tackle soaring energy bills last Thursday. The Queen's death was announced hours later by Buckingham Palace.

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 Ms Truss.

No date has yet been set for the 'fiscal event', amid the continuing cost of living crisis that has sent households' bills skyrocketing and crippled businesses, which are not covered by an energy cap.

The PM has resisted calls for a full budget to set out her policy agenda due to the amount of time it takes government agencies to prepare the necessary analysis and forecasts.

However she has said she wants to push out her spending priorities as soon as possible.

Although no details of the "fiscal event" have been revealed, Ms Truss did say during her campaign she wanted to reverse the national insurance and corporation tax hikes brought in by her leadership contest rival Rishi Sunak.

She has also rejected Labour's calls for a windfall tax on the profits of energy firms.

The prime minister’s official spokesman told reporters on Monday: “We are still planning to deliver a fiscal event this month.”

Last Thursday, 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.

She also said the government planned on 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.

It is expected to involve a significant amount of borrowing and could end up being more expensive than furlough.

The government has a narrow window to schedule the fiscal event, with the Commons essentially not sitting due to the mourning period until September 20 and then the conference recess due to start 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 on a typical tariff will go no higher than £2,500 at any point over the next two years.

The government says 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.