UK government plans energy support for business in 2024: FT | Daily News Byte

UK government plans energy support for business in 2024: FT

 | Daily News Byte

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(Bloomberg) —

The Financial Times reported, citing an unnamed official, that the UK is planning to announce energy spending support for businesses until next winter and into the spring of 2024.

Chancellor of the Exchequer Jeremy Hunt is preparing a plan that would provide some support to all companies for the next 15 months, with additional support for energy-intensive businesses such as steel manufacturing, the report said. An announcement is expected before Christmas, the FT said. It highlighted fears in the government about the impact on businesses that the energy crisis shows little sign of easing.

The plan will mark a shift from a program announced last month in which the government agreed to subsidize the energy price cap for six months under the so-called Energy Bill Relief Scheme. Under the plan, many companies will face higher energy bills when the package expires at the end of March, at a time when economic growth is expected to weaken, the newspaper said.

An energy crisis has engulfed the UK and Europe since Russia’s invasion of Ukraine and subsequent cuts in natural gas supplies sent fuel and electricity prices soaring. Many industries have been forced to cut output, affecting the economy, while inflation has soared.

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