London, UK: The Treasury has delayed making a decision on extending help on energy support for businesses until the start of 2023.
Wholesale gas and electricity prices have been fixed for firms from October until March 2023 as part of the government’s Energy Bill Relief Scheme, but financial support beyond this date is under review due to the cost. Ministers had promised to make an announcement on future support before the end of 2022.
The postponement has been slammed by business groups. On Monday December 19 the British Chambers of Commerce had called on the government to make an announcement before Christmas, arguing that many of its members would struggle to pay their energy bills when the scheme comes to an end.
“Just over a month ago, the chancellor promised businesses that they would receive a plan on the future of the energy support package before the end of the year. With 24 hours left until parliament rises, businesses have one simple question: ‘Where is this plan?'” said Shevaun Haviland, its director general.
“Businesses now face an anxious and uncertain festive period, unable to plan for the New Year.”
Kate Nicholls, boss of UK Hospitality, also felt let down by the delay. “Disappointing news that government has also postponed the announcement on future energy support until the New Year rather than before Christmas as previously announced,” she tweeted.
“Businesses are facing daily changing rates and contract decisions in January so certainty was really needed.”
The Federation of Small Businesses has warned that one in four small businesses would have to shut down, shrink, or restructure if the government does not extend energy bill support for small businesses beyond the potential 31 March cliff edge.
It is understood that one option being considered by the government is to only extend support to “vulnerable businesses”.
