thank you Mr Speaker and uh Mr Speaker let me start directly
with the issue most worrying the British people today the cost of energy
people will have seen the horrors of Putin's illegal invasion of Ukraine they will have heard
reports that their already expensive energy bills could reach as high as six thousand
five hundred pounds next year Mr Speaker we were never going to let this happen my right honorable
friend the Prime Minister has acted with great speed to announce one of the most significant
interventions the British state has ever made people need to know that help is coming and
help is indeed coming we're taking three steps to support families and businesses with the cost of
energy firstly to help households the energy price guarantee will limit the unit price that consumers
pay for electricity and gas this means that for the next two years the typical annual household
bill will be 2 500 pounds for a typical household that is a saving of at least a thousand pounds a
year based on current prices We are continuing our existing plans to give all households 400
pounds off bills this winter so taken together Mr Speaker we are cutting everyone's energy
bills by an expected 1 400 pounds this year and millions of the most vulnerable households will
receive additional payments taking their total savings this year to 2 200 pounds
secondly people we need to support the businesses who employ them the energy bill relief scheme will
reduce wholesale gas and electricity prices for all UK businesses Charities and the public sector
such as schools and hospitals this will provide a price guarantee equivalent to the one provided for
households for all businesses across the country thirdly Energy prices are extremely volatile
rising and falling erratically every hour this creates real risks to energy firms who
are otherwise viable businesses those firms help Supply the essential energy needed by households
and businesses so to support the market we are announcing the energy markets financing scheme
delivered with the bank of England this scheme will provide a hundred percent guarantee for
commercial Banks to offer emergency liquidity to energy Traders Mr Speaker the consensus amongst
independent forecasters is that the government's energy plan will reduce Peak inflation by around
five percentage points it will reduce the cost of servicing index link government debt and
lower wider cost of living pressures and it will help millions of people and businesses
right across the country with the cost of energy let no one doubt Mr Speaker that during the worst
energy crisis in Generations this government is on the side of the British people foreign
the bank of England are taking further steps to control inflation acting again only yesterday
and I can assure the house that this government considers the bank of England's Independence to
be sacrosanct and we remain closely coordinated with the governor and myself speaking twice a week
but Mr Speaker high energy costs are not the only challenge confronting this country growth
is not as high as it should be this has made it harder to pay for public services requiring
taxes to rise in turn higher taxes on Capital higher taxes on labor have lowered Returns on
investment and work reducing economic incentives and hampering growth still further this cycle
has led to the tax burden being forecast to reach the highest levels since the late
1940s before before even her late Majesty exceeded to the throne we are determined
Mr Speaker to break that cycle we need a new approach for a new era focused hungry