London Daily

Focus on the big picture.

UK to reduce support for business energy costs

UK to reduce support for business energy costs

Britain's government will set out next week how it intends to scale back subsidies for businesses' soaring energy costs, after finance minister Jeremy Hunt described the current programme as "unsustainably expensive".
The current six-month programme, which runs until the end of March, was predicted to cost 18.4 billion pounds ($22.2 billion)when the government's budget watchdog published forecasts in November.

British natural gas prices began to pick up sharply in the second half of 2021, and soared after Russia invaded Ukraine in February 2022. They have been volatile since, and although they are now back around the same level as a year ago, they are still several times higher than in early 2021.

Britain's finance ministry said on Wednesday that Hunt would announce the result of a review into business energy support when parliament returns next week from its Christmas break.

However, when Hunt met businesses on Wednesday he warned them that any future subsidies would be smaller and described the current scheme as "unsustainably expensive", with costs potentially running into the tens of billions if it continued.

"No government can permanently shield businesses from this energy price shock," the finance ministry said.

"The chancellor explained that any future support, while at a lower level, would be designed to help them transition to the new higher price environment and avoid a cliff edge in support," the ministry added.

Business groups expressed concern at the prospect of reduced support. Emma McClarkin, who met Hunt on Wednesday as chief executive of the British Beer and Pub Association, said scaled-back subsidies would be "the last straw" for many pubs.

"Energy costs are the single biggest threat to our industry right now," she said.

The Institute of Directors said it now expected some form of support to be offered to businesses for a further 12 months, but that it was concerned there would be too little for the companies most exposed to higher energy bills.

Britain's government had originally been due to publish its proposals for business energy support before the end of 2022.

Energy bill support for most households is already due to fall by more than half after April 1. This will lead to the average household's annual energy bill rising by 20% to 3,000 pounds, saving the government 14 billion pounds in the next financial year.

($1 = 0.8299 pound)
Newsletter

Related Articles

London Daily
0:00
0:00
Close
Apple Launches AI Features on Select iPhones
JP Morgan Sued Customers Over Viral Cheque Fraud Scheme
King Charles to Continue Global Tours Despite Cancer Diagnosis
Venice Extends Tourist Entry Fee Program to 2025
Tommy Robinson Charged Under Terrorism Act for Phone Offence
Plans to Increase Employers' National Insurance Announced
Washington Post Editor-at-Large Robert Kagan has RESIGNED after owner Jeff Bezos BARRED the endorsement of Kamala Harris.
Massive Theft of Artisan Cheddar from Neal’s Yard Dairy
US Man Charged with Murder of Co-Worker over Breaks
Carbon Monoxide Incident Claims Lives at UK Care Home
Birmingham Airport Evacuated Due to Suspicious Vehicle
Former US President Barack Obama raps the lyrics to Eminem's ‘Lose Yourself’ after the rapper introduces him at a Kamala Harris rally in Detroit
KYIV URGES NORTH KOREAN TROOPS IN UKRAINE TO SURRENDER
Ofcom Identifies Link Between Social Media Posts and UK Unrest
Russian Boxer Receives Lifetime Ban for Illegal Move in Boxing Debut
Biden Labels Trump a Threat to Democracy
McDonald's Linked to E. coli Outbreak Leading to One Death
Teacher Enoch Burke arrested at Wilson’s Hospital School in Ireland after refusing to endorse and affirm transgender ideology.
FBI Investigates Leak of US Intelligence on Israeli Strike Plans
Israeli Airstrike Targets Hezbollah's Financial Resources
China’s Baidu is revolutionizing transportation with its robotaxi service
Angela Rayner Secures Permanent Seat on UK National Security Council
Russian Ambassador Claims UK's Proxy War in Ukraine
Doctor Advocates for Assisted Dying Law Reform
Ruth Davis Appointed as UK’s First Nature Envoy
Pressure Mounts on Starmer to Discuss Reparations at Commonwealth Summit
James Cleverly’s Costly In-Flight Catering for Government Trips
AI Regulation Takes Center Stage in 2024 US Presidential Campaign
NASA Study Explores Potential Microbial Life Beneath Mars' Ice
Cats: The Liquid-Like Pets
Netanyahu Condemns Alleged Hezbollah Assassination Attempt
Liam Payne's Tragic Death: Tributes Pour In
Cuba's Power Struggles: Nationwide Blackout Strikes Again
Xi Jinping Urges Troops to Prepare for Conflict Amid Taiwan Drills
Farage Supported by US PR Team Linked to Steve Bannon
Controversy Over MP's Comments on Female Candidate's Family Responsibilities
Highlights from the Conservative Leadership Contest TV Debate
Childminder Jailed for Inciting Racial Hatred After Southport Attack
NHS England's Repair Bill Soars to Almost £14 Billion
Russia Accused of Using Incendiary Devices to Disrupt Western Confidence
Culture Wars: 'A Dog Whistle to Attack the Right', Says Badenoch
Virtual Reality and Advanced Technologies in Combating Cocaine Addiction
Chancellor Rachel Reeves Assembles Taskforce to Safeguard Financial Stability Amid Increased Borrowing Plans
RAF Typhoon Intercepts Air India Flight After Bomb Threat
Hamas Chief Yahya Sinwar Killed in Israeli Operation
Fruit Fly Gut Hormone Study Sheds Light on Human Longevity
Tragic Loss: Liam Payne's Passing in Buenos Aires
Liam Payne's Tragic Death in Buenos Aires
Trump Criticizes Zelensky for Role in Ukraine-Russia War
Yahya Sinwar’s Death Marks Pivotal Moment in Gaza War
×