Bank Of England Chief Says Recession Still 'Most Likely'

The governor of the Bank of England has said he welcomed the prospect of a "clear way forward" to tackle soaring energy bills from Liz Truss.

- Adam Forrest

The expected announcement from the new prime minister on energy bills would reassure markets, said Andrew Bailey - but warned that recession remained the "most likely outcome" for the UK economy.

Ms Truss is working to finalise a multi-billion-pound package to freeze household and businesses' gas and electricity bills, with some estimates that it could cost more than £100bn.

A government source confirmed that the plan is to freeze annual energy bills around the £2,500 mark. It is based on the current £1,971 cap - plus the £400 universal handout announced under Boris Johnson's government.

"I do very much welcome the fact that there will be ...announcements this week because I think that will help to, in a sense, frame policy and that's important," Mr Bailey told MPs on the Treasury select committee.