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In her first PMQs, Liz Truss vows to tackle rising energy costs

Liz Truss with members of her new Cabinet meet in Downing Street
Liz Truss with members of her new Cabinet meet in Downing Street

In her first Prime Minister's Questions, Liz Truss today called for more extraction of oil and gas from the North Sea, and for more investment in nuclear power.

"I want to see us use more of our energy supply, including more oil and gas from the North Sea and nuclear power," she told the House of Commons.

She also ruled out a windfall tax to fund any freeze on energy bills to offset huge rises in the cost of gas and electricity.

Ms Truss was speaking after her new-look Cabinet met for the first time to consider a plan to freeze energy bills, as households and businesses struggle with spiraling costs.

Deputy Prime Minister Therese Coffey insisted that Ms Truss recognises the need to "hit the ground running", with an energy plan due to be announced tomorrow, it was confirmed this afternoon.

Ms Coffey also said that the new prime minister will "strain every sinew" to get the economy growing.

She defended the make-up of the top team following the cull of senior ministers loyal to former leadership contender Rishi Sunak, insisting it is "a government of all the talents that we have in this party".

"Liz has appointed a Cabinet of a mixture of whether it's people of her proactive supporters, people who did not support her as well," Ms Coffey, who is also the Health Secretary, said.

Ms Truss is expected to announce a plan to freeze domestic bills in England, Scotland and Wales at around £2,500 - some £500 higher than the current cap but £1,000 below the level they are expected to hit in October and many thousands below rises predicted over the next six months.

The policy - which could cost as much as £150 billion according to The Times newspaper- will be funded through borrowing and general taxation and is still being finalised by Ms Truss, Chancellor Kwasi Kwarteng and other ministers and officials.

Mr Kwarteng has summoned the bosses of major banks to discuss the fresh economic strategy.

In her first speech as PM, Ms Truss insisted the UK can "ride out the storm" caused by Russian leader Vladimir Putin's war in Ukraine.

She conducted a major overhaul to leave few survivors from Boris Johnson's cabinet, as she failed to find a role for her leadership rival Mr Sunak.

Allies insisted the changes would "unify" the Tory party, pointing to senior roles for five leadership rivals, Penny Mordaunt, Tom Tugendhat, Suella Braverman, Kemi Badenoch and Nadhim Zahawi.

But Dominic Raab, Grant Shapps, George Eustice and Steve Barclay were among the Sunak supporters dispatched to the backbenches.

Jacob Rees-Mogg, the hardline Brexiteer who has decried "climate alarmism", was appointed as Secretary of State for Business, Energy and Industrial Strategy.

As well as appointing her Cabinet, on her first night in No 10 Ms Truss made her first call to a fellow foreign leader, to President Volodymyr Zelensky, accepting an invitation to visit his nation soon.

She went on to speak to Joe Biden, with the White House's account of the call making clear the US President stressed the need to come to an agreement with the EU over post-Brexit legislation on Northern Ireland.

The transatlantic relationship could be strained if Ms Truss pushes ahead with the plan to override parts of the Northern Ireland Protocol, with Mr Biden taking a keen interest in the issue.