Businesses will get less support from the government to cope with skyrocketing energy bills from April, ministers have said.
Companies and organisations like schools, charities and churches, will get a discount on their energy bills under the new scheme – rather than having costs capped, as under the current plan.
Businesses will get less support from the government to cope with skyrocketing energy bills from April, ministers have said.
Companies and organisations like schools, charities and churches, will get a discount on their energy bills under the new scheme – rather than having costs capped, as under the current plan.
The plan was welcomed by the Confederation of British Industry, which said it would “provide respite for many firms”.
“It’s unrealistic to think the scheme could stay affordable in its current form, but some firms will undoubtedly still find the going hard,” said CBI director for decarbonisation policy Tom Thackray.
“The Government has done much to protect businesses through the energy crisis. It must remain open, flexible and pragmatic in its approach to volatile wholesale energy markets as the year unfolds.”
Chancellor Jeremy Hunt said: “My top priority is tackling the rising cost of living – something that both families and businesses are struggling with. That means taking difficult decisions to bring down inflation while giving as much support to families and business as we are able.
The original energy support package for businesses was first announced in September under then prime minister Liz Truss.
But while the Government promised to support households for two years, non-domestic customers were told their support would run out in just half a year.
At the time then business secretary Jacob Rees-Mogg said there would be more support for companies after that six-month period, but only after a review to see which organisations truly needed the help.
Mr Rees-Mogg said at the time that the Government had to apply a “broad brush” to the problem because urgent action was needed.
In the longer term officials would be able to figure out a more targeted – and therefore cheaper – plan.
By Kit Heren@yung_chuvak
