In response to Liz Truss becoming Prime Minister, Rob Whiteman, CIPFA CEO, said:
“The first job for Prime Minister Truss will be to get a grip on the energy crisis. The country needs decisive action.
“Not only do sky-high energy bills risk ruining the lives of millions, but they will also have a disastrous impact on public services, which will need to meet further increased demand for services and support in an already difficult environment.
“In July insolvencies were 67% higher than the previous year. Even more businesses may be forced to pull down their shutters permanently, leaving people jobless and increasingly reliant on the welfare system. Widespread business closures would also damage the tax base for local authorities at a time when they need revenues to be reliable and robust.
“If the new PM reverses the National Insurance increase, this will leave a gaping £12bn hole in funding for health and social care, which will need to be plugged. As winter approaches it brings with it immediate pressures for the social care and health sector, which need long-term funding to ensure these vital services remain sustainable, now and for the future.
“Speed is of the essence. So CIPFA calls on the new PM to provide urgent financial support to all those who need it now in order to prevent a worsening catastrophe for the most vulnerable in our communities.
“The PM nevertheless needs to keep an eye on the longer term, plan for the future and find financial and environmentally sustainable solutions to help fix a broken energy market once and for all.”
Notes to editor
For more information, please visit the CIPFA press office.