Chancellor warns energy support ‘unsustainably expensive’

At a meeting including hospitality sector leaders, Hunt said any future support, while at a lower level, will be designed to avoid a cliff edge.

The Treasury is due to announce the outcome of the review of the energy bill relief scheme in the House of Commons next week.

According to The Times​​​, the level of support for business on energy is set to be halved​​.

The Treasury said in a statement: “No Government can permanently shield businesses from this energy price shock.

“The chancellor was clear that this level of support is unsustainably expensive and that the current scheme was always time limited to six months.

“Extending the scheme at current levels could cost tens of billions of pounds, with costs potentially doubling or tripling if international energy prices increase further than expected. It is vital that taxpayer’s exposure to volatile international energy prices is reduced.

“However, the chancellor also heard the concerns of the business community who are facing high energy prices and explained that any future support, while at a lower level, would be designed to help them transition to the new higher price environment and avoid a cliff edge in support.”

Following the meeting, Emma McClarkin, chief executive of the British Beer and Pub Association, said she had told the Chancellor of the 'critical importance' of extending the energy relief support to avoid significant business failure and closures.

“Without extended support at close to current levels, pubs and brewers in communities across the country could be lost for good,” she said.

“Energy costs are the single biggest threat to our industry right now. The failure to safeguard pubs and breweries from price increases come April will be the last straw for businesses who have been struggling for three years to remain solvent and serving their communities.

“We urge the Chancellor to extend the scheme or risk losing businesses across the UK that mean so much to so many.”