Liz Truss’s plans for a two-year energy bill freeze, estimated to cost £100 billion, underscore three points. One, the incoming Prime Minister expects the energy crisis to be with us for more than one winter. Two, she grasps how lethal it will be to the Tories’ hopes of re-election if the Treasury doesn’t intervene in a big way. Three, she is prepared to run up government debt even further in order to mitigate a crisis that threatens people’s quality of life. This third point is the crucial one.
When a neo-Thatcherite like Truss concedes the merits of transformative interventions funded by borrowing, it opens up a broader conversation. If the Treasury can burn through a few more national credit cards to buy the Tories a fighting chance in 2024, why can’t it do the same in areas where there is at least as much need but not the same chance of political reward?
Take poverty.
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