Chancellor to set out ‘more details’ on business energy support next week

Businesses will get an update next week on what help they can expect with sky-high energy bills once current support ends in the spring, a Cabinet minister has said.

Business Secretary Grant Shapps said Chancellor Jeremy Hunt will make an announcement “very shortly”, with “more details” for firms, so they can have “a little bit more certainty” around plans going forward.

There have been mounting calls for clarity on what help will be available to businesses after the current scheme – which caps wholesale energy prices on electricity and gas at about half the expected market price – ends on March 20.

“I can tell you that the Chancellor announced a review of that in his autumn statement,” Mr Shapps told BBC Radio 4’s Today programme.

“He will come out very shortly, in fact next week, with some more details for business, so there will be a little bit more certainty around that.”

Mr Hunt is said to be considering plans to keep support in place for all UK companies after the existing scheme draws to a close, in what would mark a U-turn on aims to target only the vulnerable sectors.

Like households, whose energy bills will continue to be capped – albeit at a higher rate – until April 2024, businesses could see their support extended at a less generous level beyond March, according to the Financial Times.

Pressed on whether extending help for some sectors over others could amount to picking winners and condemning losers, Mr Shapps declined to shed further light on the plans.

“You’re enticing me to do the Chancellor’s job for him. In fact, he’ll come out next week and set out detail on it,” he said.

The Government has pledged to give firms certainty over future plans for support by the new year, with Mr Hunt saying earlier this week the announcement would come just before or just after Christmas.