Rishi Sunak to extend energy bill support for all businesses
All British businesses are set to benefit from an extension of the government’s energy support package for up to 12 months.
Prime Minister Rishi Sunak is set to sign-off on the extension, however it is expected that most businesses will be given a smaller discount on their energy bills from April.
The Sunday Times reports that Sunak will agree to a package of between six and 12 months for all firms, but with extra support given for sectors that need to use more energy.
It had previously been announced by the government that industries that require high amounts of energy – like hospitality and manufacturing – would receive help beyond the 20 March deadline.
Hunt said during his autumn statement that the costs of the current package were “not sustainable” and that support would be “much lower” for firms receiving help beyond March.
The current energy support package, which runs out on 20 March, cost the government £29bn.
However, Whitehall civil servants are reportedly finding it difficult to secure information on energy usage by businesses in different sectors.
Kate Nicholls, chief executive of the trade body UKHospitality, told The Times: “The government’s energy support scheme had been a lifeline for many hospitality businesses, whose bills would have gone up more than 400 per cent had it not been in place.
“It’s vital that this support is extended … Without an extension, the hospitality sector is facing a cliff-edge in April.”
Business groups have been calling on the government to maintain universal support to businesses, with energy prices expected to peak in 2023.
The Federation for Small Businesses (FSB) has claimed that almost one-in-four small businesses are at risk of going bust without more government cash.