[ad_1]
Liz Truss, the front-runner to become Britain’s next prime minister, has signaled she will intervene this summer to help businesses and households cope with rising energy bills, with “across the board” support.
The comments come just days before the energy regulator Ofgem is expected to raise energy bills by 1,600 pounds – from around £1,971 to around £3,600 – in an announcement on Friday.
A further jump is expected in April, posing a major threat to household finances.
The Foreign Secretary’s intervention in The Sun newspaper on Sunday is the latest reversal from when she told the Financial Times in early August that she did not believe in “surrender”.
Business Secretary Kwasi Kwarteng – who is expected to become chancellor in the government led by Bash – also indicated that more “help is coming” to deal with the energy crisis.
A spokesman for Rishi Sunak, the former chancellor who is Truss’s rival for the Tory leadership, said if he became prime minister he would “look at all options” to help companies cope with energy bills – with small businesses likely to be a focus. Support.
The Chancellor, Nadim Zahawi, asked the authorities to explore ways the government can help companies that may face a power charge terminal. The Treasury will present a set of options when the new Prime Minister enters Downing Street on September 5.
One idea being explored by Treasury officials is to restructure Covid-19 loan plans to help companies survive looming energy price hikes. Other proposals being considered include subsidies for small companies, business holidays and temporary VAT exemptions.
“It’s all speculation, but Nadeem Zahawi has asked all the options on the table,” an official said. “He hasn’t received any advice on it yet, but he’s of the opinion that it’s something he’s going to have to look into.”
Craig Beaumont, head of external affairs at the Federation of Small Businesses, expressed relief that the Treasury was considering a support package for companies, saying it was “so far all about households”.
Although the FSB wants businesses with 10 employees or less to be protected by energy cost capital, it says using existing mechanisms is the right approach for businesses to get help immediately.
Opposition Leader Sir Keir Starmer has stepped up pressure on the Conservatives by announcing that a Labor government will freeze energy bills for six months from October at a cost of nearly £60bn.
The current government, led by Boris Johnson, announced earlier this summer that it would already pay £400 to every family, with 8 million of the most vulnerable families receiving £1,200.
But with energy prices rising more than expected, pressure is mounting on Johnson’s successor to go further — and expand both the size and scope of the bailout package.
The Trust, which is leading Sunac on a Conservative membership vote, has already announced plans to scrap proposed increases in corporation tax and national insurance and remove green fees from energy bills.
She said her choice was low taxes to expand the economy. “What I’m against is taking money from people’s taxes and giving that money back to benefits.”
The Trust said its first budget would “investigate ways to make life more affordable for people”, adding that companies expected help with bills. I know it’s not just customers or consumers that have energy price issues, it’s small businesses.
The UK economy is not necessarily heading for a recession, she said. “There’s a lot of talk that a fall is coming. “I don’t think this is inevitable,” she said.
A survey of small businesses and sole traders released by the FSB on Friday showed that one in seven were expecting to downsize or close their business in the next 12 months, due to rising inflation.
Businesses are not bound by Britain’s energy price cap and instead negotiate fixed price deals with suppliers. Energy consultancy Cornwall Insight has warned that some companies could see a five-fold increase in their energy bills when large amounts of corporate fixed price deals expire in October.
[ad_2]
Source link
