LONDON • New British Prime Minister Liz Truss announced Thursday that her Conservative government will cap domestic energy prices for homes and businesses to ease a cost-of-living crisis that has left residents across the United Kingdom facing a bleak winter.

The moves are a huge government intervention in the economy by Truss, who sees herself as a small-state, free-market conservative. She says she favors tax cuts over handouts, but she has been forced to act by the scale of the crisis as Russia’s war in Ukraine has sent energy prices surging.

Truss also said she will approve more North Sea oil drilling and lift a ban on fracking to increase the domestic energy supply.

It was a huge policy announcement from a prime minister who only took office Tuesday. And it was overshadowed by concerns about the health of 96-year-old Queen Elizabeth II. As Truss made her statement in the House of Commons, she was informed that the queen is under medical care and doctors are “concerned” for her health.

Truss tweeted that “the whole country will be deeply concerned by the news from Buckingham Palace this lunchtime.”

In her energy statement, Truss said “we are supporting this country through this winter and next and tackling the root causes of high prices so we are never in the same position again.”

Truss said the two-year “energy price guarantee” means average household bills for heating and electricity will be no more than $2,872 a year.

New British Prime Minister Liz Truss speaks Tuesday outside Downing Street in London.

the associated press