Liz Truss dismisses Keir Starmer’s £29bn plan to freeze energy bills this winter

Liz Truss has dismissed Keir Starmer’s £29 billion plan to freeze energy bills for millions of Brits this autumn, claiming it is wrong to keep “sticking plasters” on the crisis.

The foreign secretary- the frontrunner in the Tory leadership contest – insisted her priority is slashing taxes if she becomes the UK’s next prime minister in September.

Rishi Sunak, her rival, immediately hit out at her comments on Tuesday, with a campaign spokesperson mocking her cost-of-living plans as “clear as mud”.

It comes after Mr Starmer revealed his multi-billion proposal to ease the “national emergency” facing milions of Brits who will struggle to pay their energy bills this winter.

If adopted by the next prime minister it would mean the energy price cap would remain at the current £1,971 – rather than rising to £3,600 in October and over £4,000 in 2023.

He also accused Ms Truss and Mr Sunak, the former chancellor, of lacking ideas to solve the crisis – just two weeks before one of them is elected as Boris Johnson successor in No 10.

Appearing at a whisky distillery in Elgin, north-east of Inverness, Ms Truss was asked about Labour’s plan and whether she was failing to “grasp the scale” of the crisis.

“We’re still in the leadership contest at the moment,” she replied.

“My priority is reducing taxes so people can keep more of their own money. At the same time as making sure we boost energy supply. It’s wrong to just keep sticking plasters on this problem.

“What we actually need to do is make sure we are unleashing more energy for example the North Sea, we’re investing in technologies like nuclear and we’re finding more renewables as well.”

During the contest, Ms Truss has promised to reverse the national insurance hike and suspend the green levy on energy bills, but has come under fire for rejecting “handouts” for Brits.

Following her comments on Tuesday, a Sunak campaign spokesperson said: “Truss’s plan to ease the cost of living squeeze for families and the most vulnerable is as clear as mud.

“First she says no handouts, but now she is saying she’ll provide handouts. She pledged tax cuts for everyone, but is now against using ‘blunt instruments’ that benefit ‘high earners’.”

They added: “It’s not good enough to say wait until late September. Families need certainty now – bills are going to go up and wages have taken a hammmer blow from rising inflation.

“Liz needs to come clean on her cost of living plans so pensioners and hard working families know if they will lose out.”

The remarks come as the pair prepare to face a grilling on Tuesday evening on energy bills, the cost of living, and the issue of Scottish independence in the only official hustings event of the contest north of the border.