Liz Truss’s energy price freeze could soften UK recession, say economists

UK retailers and pubs rise on FTSE after outline emerges of new prime minister's plan to tackle rising bills

Liz Truss's expected energy price freeze could stop inflation in Britain from rising further and reduce the severity of the recession that is forecast to hit the country this winter, economists have said.

As details of the new prime minister's plan to tackle soaring household bills emerged on Tuesday, some of the UK's largest pub groups, food chains and retailers were among the biggest risers on the London stock market as investors bet that support for struggling families would bolster household spending across the economy.