UK Finance Ministers attribute rising energy prices to Chinese demand and long, cold winters


Britain’s finance minister said rising demand in China and a “long and cold winter” across the Eurasian continent were one of the factors that caused the UK’s energy prices to soar.

Finance Minister Rishi Sunak said “rapid growth in gas demand in China and elsewhere” pushed up global prices, meaning that cold winters in Europe and Asia meant “less than normal” gas storage. ..

Following the government’s £ 9bn package announcement to reduce living costs, Sunak said it couldn’t underestimate the financial pressures on households in the coming months.

UK energy regulators announced Thursday that they would raise their energy price cap by a record 54% in April, adding £ 693 ($ 938) to £ 708 ($ 958.7) to their average annual bill.

The price increase will take effect on the same day, National insurance increase Funding the NHS will raise inflation by 7.25% in April.

Snacks also said prices could rise further later this year due to the “unpredictable” energy market.

Snow Scotland UK
On January 7, 2022, the town of Beith in North Ayrshire, Scotland, was covered in snow. (Jane Barlow / Pennsylvania)

write in Sun, The Prime Minister defended the “difficult decision” to raise taxes after two years of huge spending on the CCP (Chinese Communist Party) virus pandemic, and “to deal with the unacceptable unprocessed portion caused by the pandemic. We need to raise money. ” Vaccine payments and integration of our health and social care systems. “

He also said that future energy prices and inflation cannot be “predicted or controlled”, but in the short term they may help “absorb the shock” from rising energy prices.

Earlier Thursday, Snack announced a rebate of energy bills to “mitigate the blow” of rising energy costs.

The £ 9 billion ($ 12.19 billion) package will provide each family with £ 350 ($ 473.9). This includes a one-time repayable £ 200 ($ 270.8) discount and a £ 150 ($ 203) refund for Council tax claims.

“Four out of five families earn £ 150 [$203] In April, as a council tax discount, there will be immediate cash in your bank account, which will help increase costs, “Sunak explains.

“Then, in the fall, everyone gets £ 200 [$270.8] From their energy bills, which will be repaid in five years, “he added.

Following Thursday’s announcement, Prime Minister Boris Johnson defended the package by saying it was “very good.”

Johnson said in 5 news that the world is experiencing a “post-COVID downturn” with “inflation, supply chain blockages as the global economy recovers.”

“I think you’ll receive a huge amount of taxpayers, £ 9.1 billion. [$12.3 billion]Transferring it to help people at the cost of heating and energy, everyone can understand that it is a large commitment, “he said.

PA contributed to this report.

Lily Chow

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Lily Zhou is a freelance writer who mainly covers the British news of The Epoch Times.