Rescue loans considered for manufacturers within bonus curb conditions
Ministers are considering offering manufacturers rescue loans to help them weather rising energy prices, if they restrict bonuses.
Steel, chemical and ceramics manufacturers will be asked to limit bosses’ bonuses and dividends under plans, The Telegraph reported.
Business secretary Kwasi Kwarteng is understood to have submitted such a proposal to the Treasury within options to save high-energy-using companies from collapsing.
The plans mirror requirements in the Coronavirus Large Business Interruption Loan Scheme (CLBILS), which forced businesses to curb dividend payments, bonuses and pay rises for senior management.
Ministers are thought to believe that such rules would encourage firms to repay the loans more quickly, The Telegraph reported.
It has been reported an announcement on extending state loans to factories threatened with closure could come within days.
Energy regulator Ofgem is reportedly bracing itself for a new wave of supplier collapses, according to Sky News.
At least four suppliers were reported to be in talks with Ofgem on Tuesday, possibly including Pure Planet.