London Daily

Focus on the big picture.
Sunday, Mar 01, 2026

Energy prices: No commitment from Kwarteng on business gas help

Energy prices: No commitment from Kwarteng on business gas help

Business Secretary Kwasi Kwarteng has not committed to any additional government help for businesses struggling amid record gas prices.

Some industries have warned firms could be forced to shut down operations.

Mr Kwarteng said he was working closely with the chancellor over possible support for energy intensive sectors - but a Treasury source denied this.

The business secretary said domestic customers would not see a change to the energy price cap this winter.

Asked on BBC One's Andrew Marr programme whether there would be additional government help for energy-intensive companies, Mr Kwarteng described the situation as "critical" and said he was "looking to find a solution".

When Andrew Marr suggested this sounded like a "yes" the business secretary said: "No, it doesn't sound like yes at all.

"We already have existing support and we're looking to see whether that's sufficient to get us through this situation."

Speaking to Times Radio Mr Kwarteng, who met leaders from heavy industry on Friday, said he was not going to commit to "any firm figure or subsidy" for companies.

Asked about whether the government would ensure factories would not have to close if they could not pay for gas he said it was a commercial decision and "up to them".

He added: "We are not in the business of bail-outs. What we are in the business of is ensuring security of supply and that is what I am focused on."

Wholesale gas prices have risen 250% since January.

CEO of British Glass Dave Dalton, who was at Friday's meeting with Mr Kwarteng, said some of the confederation's "significant" members were "teetering on the edge".

"I think some companies are staring down the ability to survive, absolutely - ultimately that obviously cascades on to jobs and impacts on the consumer," he told the BBC.

Gareth Stace, director general of UK Steel, said he was frustrated by the lack of action to support businesses.

He told the BBC that without help in the next week or so, there would be "significant and permanent damage to the UK steel sector".

Unite leader Sharon Graham said the country was "contemplating factory shutdowns across viable manufacturing and businesses" and that workers were "worried sick".


Businesses have been shouting louder and louder for support through this period of soaring energy prices.

This morning, the business secretary told the BBC he was listening to their concerns - but would not commit to any extra support.

Those industries that use a lot of energy for manufacturing say that the time for working out a way forward has long gone.

The director general of UK Steel, Gareth Stace, expressed his frustration, saying pauses in steel production will only increase.

The government says the current situation emphasises the need for a revolution in how we generate energy, moving towards home-grown renewables.

But that's little comfort for those businesses dependent on energy from fossil fuels now, competing with intense demand in a global market.

On the Andrew Marr show, Mr Kwarteng denied asking for "billions" from the Treasury to subsidise energy-intensive businesses and said supply itself was "not an issue".

A Treasury source said the business secretary had been "mistaken" to say that he had been working on possible support measures with the Chancellor Rishi Sunak.

Bridget Phillipson, Labour's shadow chief secretary to the Treasury, said the government "needs to get a grip" and called for "urgent answers on who exactly is running the show".

"The two key government departments responsible for the current cost of living crisis have spent this morning infighting about whether they were in talks with each other. What a farce," she said.

She also accused the government of having "put its out of office on", referring to reports that the prime minister is on holiday in Spain.


A number of Conservative MPs have called for the government to take action to support heavy industry.

The SNP's Westminster leader Ian Blackford called on the UK government to "nurse" businesses through the crisis, describing it as a "perfect storm".

Ofgem price warning


The domestic consumer energy price cap, which is reviewed every six months, sets the maximum level a supplier can charge a consumer on a standard tariff in England, Wales and Scotland.

Mr Kwarteng told Marr that protecting consumers was his "first and foremost objective" and as such the price cap would stay at its current level until its next update which is due to in April.

Some suppliers say the cap is just delaying an inevitable increase in consumer prices and should be reviewed more regularly.

Energy regulator Ofgem has warned households will see further "significant rises" in the spring, when the cap is reviewed.

Asked by Marr if he was sure the lights would stay on this winter, Mr Kwarteng said "yes, I am".

Due to high gas prices household energy suppliers have been forced to sell gas for less than they can buy it due to the price cap, leading some to fail.

Last month, nine domestic energy supply companies went out of business, forcing 1.7 million customers to move to new suppliers and on to higher rates.

Paul Richards, chief executive of Together Energy, which he said is currently making losses, said while he supported a price cap to protect customers, the current mechanism "is not fit for industry, nor is it fit for customers".

He said it protected customers in the short term but somewhere between £1bn and £3bn in costs would be spread back across business and households as a result of suppliers going bust.

The founder of OVO Energy Stephen Fitzpatrick told Marr that it has been "too easy" for companies to enter the energy market and that there will be more companies in difficulty.

He said the market was a complicated one, and he thought some people had not understood the risks.


Kwasi Kwarteng: "The energy price cap stays"



Newsletter

Related Articles

0:00
0:00
Close
Violent Pro-Iranian Protesters Storm U.S. Consulate in Karachi
Missile Debris Sparks Fires at Dubai’s Jebel Ali Port Near Palm Jumeirah
Iran Strikes U.S. Fifth Fleet Headquarters in Bahrain Amid Wider Gulf Retaliation
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Bill Clinton Denies Knowing Woman in Hot Tub Photo During Closed-Door Epstein Deposition
Former U.S. President Bill Clinton Testifies on Ties to Jeffrey Epstein Before Congressional Oversight Committee
Dyson Reaches Settlement in Landmark UK Forced Labour Case
Barclays and Jefferies Shares Fall After UK Mortgage Lender Collapse Rekindles Credit Market Concerns
Play Exploring Donald Trump’s Rise to Power by ‘Lehman Trilogy’ Author to Premiere in the UK
Man Arrested After Churchill Statue Defaced in Central London
Keir Starmer Faces Political Setback as Labour Finishes Third in High-Profile By-Election
UK Assisted Dying Bill Set to Fall Short in Parliament as Regional Initiatives Gain Ground
UK Defence Ministry Clarifies Position After Reports of Imminent Helicopter Contract
Independent Left-Wing Plumber Secures Shock Victory as Greens Surge in UK By-Election
Reform UK Refers Alleged ‘Family Voting’ Incidents in By-Election to Police
United Kingdom Temporarily Withdraws Embassy Staff from Iran Amid Heightened Regional Tensions
UK Government Reaches Framework Agreement on Release of Mandelson Vetting Files
UK Police Contracts With Israeli Surveillance Firms Spark Debate Over Ethics and Oversight
United Airlines Passenger Hears Cockpit Conversations After Accessing In-Flight Audio Channel
Spain to Conduct Border Checks on Gibraltar Arrivals Under New Post-Brexit Framework
Engie Shares Jump After $14 Billion Agreement to Acquire UK Power Grid Assets
BNP Paribas Overtakes Goldman Sachs in UK Investment Banking League Tables
Geothermal Project to Power Ten Thousand Homes Marks UK Renewable Energy Milestone
UK Visa Grants Drop Nineteen Percent in 2025 as Migration Controls Tighten
Barclays and Jefferies Among Banks Exposed to Collapse of UK Mortgage Lender MFS
UK Asylum Applications Edge Down in 2025 Despite Rise in Small Boat Crossings
Jefferies Reports Significant Exposure After Collapse of UK Lender MFS
FTSE 100 Reaches Fresh Record Highs as Major Share Buybacks and Earnings Lift London Stocks
So, what's happened is, I think, government policy, not just under Labour, but under the Conservatives as well, has driven a lot of small landlords out of business.
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
From fears of AI-fuelled unemployment to Big Tech's record investment, this is AI Weekly.
Apple just dropped iOS 26.4.
US Lawmakers Seek Briefing from UK Over Reported Encryption Order Directed at Apple
UK Business Secretary Calls on EU to Remove Trade Barriers Hindering Growth
Legal Pathways for Removing Prince Andrew from Britain’s Line of Succession Examined
PM Netanyahu welcome India PM Narendra Modi to Israel
Shadow Diplomacy: How Harry and Meghan’s Jordan Trip Undermines the Monarchy
Sir Jim Ratcliffe, co-owner of Manchester United, comments on immigration in the UK.
Bill Gates, the UN and the WEF are attempting to construct "a giant digital gulag for all of humanity" via digital ID, CBDCs and vaccine passport infrastructure.
Britain’s Channel Crisis: Paying Billions While the Boats Keep Coming
Downing Street’s Veteran Deception Scandal
UK HealthCare Expands ‘Food as Health’ Initiative Statewide to Tackle Chronic Illness in Kentucky
Leonardo Chief Says UK Set to Decide on New Medium Helicopter Programme
UK Slows Chagos Islands Agreement After Concerns Raised in Washington
European and UK Stock Markets Reach Fresh Highs as Banks and Miners Lead Rally
UK Government Insists Chagos Islands Negotiations Continue After Minister’s ‘Pause’ Remark
No Confirmed Deal for Engie to Acquire UK Power Networks Amid Market Speculation
UK Reaffirms Updated Entry Requirements for Travellers as of February 25, 2026
General Atlantic to sell equity stake in ByteDance, valuing the company at $550 billion
×