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MNI BRIEF: UK Energy Support to Cost GBP60 Bln: Kwarteng

(MNI) London
(MNI) London

UK Chancellor of the Exchequer Kwasi Kwarteng estimated a six month GBP60 bn cost on the government's two-year Energy Price Guarantee; Gilt sales increased.

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The estimated cost of the UK's Energy Price Guarantee is GBP60 billion for the next six months, Chancellor of the Exchequer Kwasi Kwarteng said Friday as he delivered a fiscal package including tax cuts to parliament. The EPG is set to run for two years, with a unit price cap limiting the typical annual household bill to GBP2,500 per year, so the GBP60 billion ticket may only be a fraction of the total cost, although costs hinge on the difference between future wholesale prices and the level of the cap and could vary wildly.

He also announced that next year’s planned increase in Corporation Tax will be cancelled, at an estimated cost of GBP19 billion.

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The estimated cost of the UK's Energy Price Guarantee is GBP60 billion for the next six months, Chancellor of the Exchequer Kwasi Kwarteng said Friday as he delivered a fiscal package including tax cuts to parliament. The EPG is set to run for two years, with a unit price cap limiting the typical annual household bill to GBP2,500 per year, so the GBP60 billion ticket may only be a fraction of the total cost, although costs hinge on the difference between future wholesale prices and the level of the cap and could vary wildly.

He also announced that next year’s planned increase in Corporation Tax will be cancelled, at an estimated cost of GBP19 billion.

Keep reading...Show less