Brevia Consulting is providing a weekly round-up and analysis of the UK headlines. This week, read about Prime Minister Liz Truss’ plans to delivers her Growth Plan without cutting public spending, the new Energy Prices Bill introduced to Parliament, and the amber alert issued by the NHS over stocks of donor blood.
TRUSS CONFIRMS SHE HAS NO PLANS TO CUT PUBLIC SPENDING
At Prime Minister’s Question Time on Wednesday 12 October, the Prime Minister, Liz Truss MP, told Parliament her government had no plans to cut public spending.[1] This was despite the Institute for Fiscal Studies stating that, to deliver its policy of stabilising debt as a percentage of GDP over the next five years, the Government would need over £60 billion of fiscal tightening in 2026-27.[2] The Prime Minister’s words placed further focus on her government’s economic stewardship. Conservative backbencher and Treasury Select Committee Chair, Mel Stride MP, reacted by questioning whether the Government could reassure markets without ‘some element of further row back’ on her £43 billion Growth Plan.[3]
NEW ENERGY PRICES BILL ANNOUNCED
This week saw the Government introduce its new Energy Prices Bill to Parliament.[4] The Bill will provide the necessary legislative framework to deliver the Prime Minister’s Energy Plan. This includes the Energy Price Guarantee for households, the Energy Bill Relief Scheme for businesses, and the alternative fuel payment for those not on the mains gas grid. The Bill also includes a proposal for a new ‘Cost-Plus Revenue Limit’ to cap the revenue of renewable and nuclear generators from the start of 2023.[5] The decision to introduce a revenue cap comes after ministers were unable to secure long-term voluntary agreements on fixed-price contracts. The announcement sparked debate over whether the cap amounts to a windfall tax, with many arguing that the move could deter necessary investment in green energy.[6] Second reading of the Bill is scheduled to take place on Monday 17 October.
NHS ISSUES AMBER ALERT FOR DONOR BLOOD SUPPLIES
For the first time ever, NHS Blood and Transplant has declared an amber alert, warning hospitals that stocks of blood have fallen critically low in England.[7] The alert signaled to hospitals that supplies have fallen to 3.1 days, and that measures should be put in place to protect remaining stocks. A spokesperson for the NHS has clarified that the problem is being caused by staffing issues at blood donor centres, rather than by a lack of donors. Despite this, the NHS saw 7,500 new donors register on the day the alert was issued, the highest number in 20 years.[8] Rory Deighton, who leads the NHS Confederation’s acute network, said: ‘We hope this is a wake-up call to the government for the need for a fully funded workforce strategy for health and care.’[9]
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Notes
[1] The Prime Minister, Hansard, 12 October 2022, Col.120, Link
[2] IFS, ‘With a weaker economy, getting government finances on a sustainable path without cancelling tax cuts could force Chancellor into big and painful spending cuts’, 11 October 2022, Link
[3] Yahoo News, ‘Liz Truss faces growing pressure to rip up tax-slashing plans’, 13 October 2022, Link
[4] Energy Prices Bill, 13 October 2022, Link
[5] BEIS, ‘Government introduces new Energy Prices Bill to ensure vital support gets to British consumers this winter’, 11 October 2022, Link
[6] BBC, ‘Government introduces new Energy Prices Bill to ensure vital support gets to British consumers this winter’, 12 October 2022, Link
[7] The Times, ‘Operations may be delayed as NHS issues blood shortage alert’, 12 October 2022, Link
[8] BBC, ‘Public responds to NHS amber alert over donor blood stocks’, 13 October 2022, Link
[9] NHS Confederation, ‘NHS Confederation responds to the amber notice issued by NHS Blood and Transplant’, 12 October 2022, Link
