Chancellor of the Exchequer Jeremy Hunt is drawing up a plan that would provide some support to all companies for the next 15 months, with extra backing for energy-intensive businesses such as steel manufacturing, the report said. An announcement is expected before Christmas, the FT said. It highlights the jitters in the government about the impact on businesses with the energy crisis showing little signs of easing.
The plan will mark a shift from a program announced last month in which the government agreed to subsidize an energy price cap for six months under the so-called Energy Bill Relief Scheme. Under the plan, many companies will be hit with high energy bills when the package ends in late March, at a time when economic growth is expected to weaken, the newspaper said.
An energy crisis has gripped the UK and Europe ever since Russia’s invasion of Ukraine and subsequently deep cuts in natural gas supply sent prices of the fuel and electricity soaring. Many industries have been forced to reduce output, hitting the economy, while inflation has jumped.