It’s been speculated that UK Chancellor of the Exchequer Rishi Sunak will today announce some emergency measures to help the most vulnerable UK households to help alleviate the strain on their finances because of the surge in energy prices.
The package, which it is said is expected to be in the region of £10bn, “is also likely to be a welcome distraction for the government in the wake of the furore over the Sue Gray report over gatherings and parties at Number 10 and the Cabinet Office,” CMC chief market analyst Michael Hewson said this morning.
“The big question is how it will be paid for, with speculation that we could see the announcement of a windfall tax of some description, in a move that while politically popular, could have wider unexpected and negative consequences further down the line, when it comes to encouraging business to invest in the UK,”
Hewson added “it would also be seen as a political win for the opposition parties who have been campaigning for such a move for weeks now.”
“Either way it would be the latest example of a government reacting to events, rather than shaping them,” he noted.