The government is reportedly poised to halve the support it offers to businesses on energy bills.
According to The Times, the government energy bill support scheme for firms will halve in the spring to reduce taxpayers’ exposure to volatile energy prices.
The news follows a new report published earlier today which claims that the UK faces the worst and longest recession in G7.
The newspaper reported that Chancellor Jeremy Hunt is expected to announce a 12-month extension to the current scheme that subsidises the wholesale energy prices for businesses.
However, the level of support will allegedly be halved.
The new scheme is expected to cost less than £20 billion, compared with £40 billion for the existing one, the report added.
The government energy bill relief scheme was launched on 1st October 2022 and will run until 31st March 2023.
A Treasury spokesperson told ELN: “We are protecting businesses from high energy costs this winter, caused by Putin’s invasion of Ukraine, through the six-month £18 billion Energy Bill Relief Scheme.
“However, this is very expensive and we need to ensure longer-term affordability and value for money for the taxpayer.
“That is why we are currently carrying out a review with the aim of reducing the public finances’ exposure to volatile international energy prices from April 2023.
“We will announce the outcome of this review in the new year to ensure businesses have sufficient certainty about future support before the current scheme ends in March 2023.”