Ministers consider plans to bail out businesses facing energy price spikes
The government is considering plans to bail out businesses this year as they face soaring energy prices over autumn and winter.
Chancellor Nadhim Zahawi is drawing up different options for the next Prime Minister to consider when they are sworn in next month.
The Sunday Times reports that measures such as VAT and business rates holidays are being considered at the Treasury, as well as direct grants.
These kind of measures were used during the Covid lockdowns to help businesses stay afloat and cost tens of billions of pounds.
Businesses have not been offered the same level of help as households with their energy bills as prices have skyrocketed over the past year.
The energy price cap also does not apply to the private sector, leading to fears that many SMEs could go broke this year as prices continue to increase.
There are particular concerns that British manufacturing businesses who are high energy users are at risk of going bust this winter.