[ad_1]
LONDON (AP) — The U.K. government said Wednesday it will put a cap on businesses’ wholesale energy bills this winter to ensure they don’t go bankrupt if energy prices soar.
Authorities said the government would cover nearly half of all commercial energy bills for six months from October 1 to ensure businesses “can survive this winter”.
“We will review it in six months. After that, we will ensure that the most vulnerable businesses like bars and shops continue to be supported,” said Prime Minister Liz Truss, who is in New York for the United Nations General Assembly.
Finance Minister Kwasi Kwarteng said the government’s measures would “stop business failures, protect jobs and limit inflation”, although critics predicted it would lead to higher interest rates and government debt.
Officials did not provide details on how much the support package would cost, but it is expected to be in the billions of pounds (dollars).
Accounting firm PricewaterhouseCoopers estimates that measures to help businesses could cost between £1bn and £20bn.
The news follows similar measures announced earlier this month to cap domestic energy prices to help millions heat their homes amid the cost of living crisis.
Rising gas and electricity bills, coupled with sharp increases in the cost of food, have pushed UK inflation to the highest level in decades. The Bank of England expects the economy to slip into recession next year.
Follow The Gleaner on Twitter and Instagram @JamaicaGleaner and Facebook @GleanerJamaica.Message us on WhatsApp at 1-876-499-0169 or email us at Feedback online@gleanerjm.com or Edit @gleanerjm.com.
[ad_2]
Source link