Liz Truss has won a clear victory in the Conservative Party leadership contest – but not by quite as commanding a margin as many expected. After a long and fractious campaign, her rival, Rishi Sunak, won the votes of 43 percent of the party members. So the new leader has to heal the wounds within a divided party. She also has a truly terrible economic outlook to deal with.
The most pressing problem is an energy crisis. Household gas and electricity bills are set to rise threefold, largely as a consequence of the disruption of energy supplies caused by the war in Ukraine.
Liz Truss has said that within days she will announce measures to deal with this looming catastrophe.
But that could cost tens of billions of pounds, perhaps as much as a hundred billion pounds, and no one is clear where that money will come from – especially as Truss has pledged to cut taxes, diminishing the amount of public money available for a bail-out.

