Truss Drafts Energy Plans to Aid UK Households, Businesses

The video discusses a major Bloomberg report on a plan to freeze gas and electricity bills for consumers and businesses, costing £130 billion and £40 billion respectively. The pound has risen due to these plans, but there are concerns about the Tory base's reaction, as the plan seems like a handout, which contrasts with the preference for tax cuts. Economists, including Paul Johnson, argue that such intervention is necessary despite its flaws. Former Chancellor Philip Hammond warns that the government cannot endlessly fund such measures, raising questions about future strategies if this situation persists.

How does the proposed intervention relate to the concept of tax cuts versus handouts?

What is the implication of the phrase 'new normal' in the context of government intervention?