Government Drafting New Cost-of-Living Package for Next PM
Government Drafting New Cost-of-Living Package for Next PM

The government is developing a fresh package of cost-of-living support for the next prime minister to consider upon taking office, Chief Secretary to the Treasury Simon Clarke has confirmed. Clarke argued it is “absolutely right” for the new leader to evaluate these options comprehensively, cautioning against announcing “new uncosted policies” during the leadership election period.

The announcement follows criticism from frontrunner Liz Truss, who has Clarke’s backing, over proposals to agree emergency energy bill support with the government and her rival Rishi Sunak before the contest concludes. Sunak had welcomed a meeting to agree winter support, but Truss branded the idea a “kangaroo committee” at Tuesday’s hustings in Darlington.

Consumer champion Martin Lewis earlier called on both candidates to outline their plans to tackle the energy crisis, warning of “mental health damage” facing millions. Speaking in Manchester, Truss insisted the UK already has a “proper constitution” and stressed that the current prime minister and chancellor are responsible for decisions now. She also reiterated that cutting taxes is a top priority but declined to give further details on a future budget.

Chancellor Nadhim Zahawi acknowledged the government is making “all sorts of contingency plans” amid concerns over potential blackouts this winter, citing Russian President Vladimir Putin’s deliberate manipulation of energy prices. Meanwhile, allies of Sunak downplayed the defection of supporter Chris Skidmore to Truss’s camp, though Truss’s campaign claimed it could trigger a “bigger exodus” from Sunak’s team.

Former Tory leader Lord Howard agreed with Deputy Prime Minister Dominic Raab that Truss’s tax-cutting plans would be an “electoral suicide note”. The Confederation of British Industry’s director general, Tony Danker, has called for the prime minister and both contenders to “come together to agree a common pledge” to support people and quell fears over the cost-of-living crisis.