Liz Truss' rejection of windfall tax 'to put UK in debt for decades'

The British pound plunged to its lowest level facing to the dollar in 37 years as pundits warned that Liz Truss' plan to ease the cost of living crisis without taxing energy companies could leave Britons in debt for decades.

Markets looked shaken by the new Prime Minister's decision to borrow to pay the pound More than $100 billion needed to keep the lights and heating on this winter.

The low-wage think tank, the Resolution Foundation, warned that the eventual cost of the energy crisis could even exceed the £137 billion bailout of ap banks. After the financial crash of 2008.

The Prime Minister's plan, which she will unveil in a statement to the Commons on Thursday, will freeze average bills at a level of around £2,500 by setting a cap on the price of a unit of energy, with anything above paid by the government.

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