LONDON: Liz Truss has promised to deal with surging energy costs and to cut taxes, after she won the Tory leadership contest to become the next Prime Minister, BBC reported.

Part of her plan, set to be announced on Thursday, could allow energy suppliers to take out government-backed loans in order to subsidise bills, it said.

Truss will succeed Boris Johnson after being formally appointed by the Queen at Balmoral Castle on Tuesday.

The 47-year-old, the UK’s third woman PM, will then announce her cabinet.

In her victory speech, she promised a “bold” programme of tax cuts to grow the flagging economy and to prevent the UK tipping into recession.

She will take the reins of power on Tuesday, bringing Boris Johnson’s turbulent premiership to an end less than three years after the Conservatives’ resounding election victory in 2019.

Truss’s most pressing decision as premier will be how best to shield households and businesses from the soaring international price of energy.

Her team is understood to have been working on a support package for weeks, with an announcement pencilled in for Thursday.

(Inputs from BBC)