LONDON (AP) – Britain’s government said Wednesday it will cap wholesale energy bills for businesses this winter to ensure companies don’t go bust amid soaring energy prices.
To ensure that companies are not left behind, authorities announced that the government would pay almost half of all energy bills in six months beginning Oct. 1. “are able to get through this winter.”
“We´re going to review it after six months. We´ll make sure that the most vulnerable businesses like pubs, like shops, continue to be supported after that,”Liz Truss is Prime Minister and she was in New York for the U.N. General Assembly.
Kwasi Kwarteng, Treasury Chief, said that the government’s measures will be implemented “stop businesses collapsing, protect jobs and limit inflation.”
Although officials haven’t provided any details about the cost of this support package, it is estimated to be billions (in dollars).
These measures were similar to those announced earlier this month in order to reduce domestic energy costs and to heat millions of homes, amid an unprecedented cost-of living crisis.
Truss: New British Govt Hints Real Tax Cuts Coming to Ease Cost of Living Crisis https://t.co/OIk56oClNl
— Breitbart London (@BreitbartLondon) September 20, 2022
Inflation in the U.K. has reached its highest point in many decades due to spiralling electricity and gas bills. According to The Bank of England, the economy will enter recession in 2013.
In July, the consumer price index reached 10.1%. However, it dropped slightly to 9.9% for August. For years, Britons have been used to an inflation rate around 2%.
The government, which predicted the measures would cut the U.K.’s soaring inflation rate, is expected to push through emergency legislation for the relief plans once Parliament returns in October.
British Beer and Pub Association announced Wednesday that a move would be made. “lifeline”For many companies.
“This intervention is unprecedented, and it is extremely welcome that government has listened to hospitality businesses facing an uncertain winter,”Kate Nicholls was chief executive at UK Hospitality.
Truss announces a two year agreement “energy price guarantee”Consumers will be able to set a cap of 2,500 Pounds ($2,872) per year on their average heating and electric bills. In October, the household average bill was set to increase to 3,500 Pounds ($4,000 per year). This is an 88% jump on the 1,971 Pound ($2,236).
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