Matthew Lynn Matthew Lynn

How Liz Truss can solve the energy crisis

Another big bail-out isn't the answer

(Credit: Getty images)

It will be expensive. It will last far longer than anyone expects. And it will distort the market even more than it already is. Barring a major upset, Liz Truss will move into No. 10 Downing Street later today. Once she’s there, Britain’s new prime minister will have little choice but to take control of soaring energy prices. How she does that will be the first big test of her premiership. If Truss can do it in a way that boosts output, and encourages investment, it will be worthwhile. But if she opts for just another bail-out she will get stuck in the same dismal groove as Boris Johnson and Rishi Sunak. 

If there were a couple of LNG tankers for every proposal for fixing the energy crisis no one would be worrying about how to keep the lights on this winter. We could vastly increase welfare payments to help people through the winter.

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