UK's Sunak To Halve Support That Helps Businesses Pay Fuel Bills

  • British Prime Minister Rishi Sunak is poised to halve financial support on energy bills for businesses, amid concerns about the cost, The Times reported.
  • Former Prime Minister Liz Truss had announced in September a six-month scheme to subsidise the wholesale price for businesses. UK Chancellor Jeremy Hunt "will announce a 12-month extension to the scheme but with the level of support more than halved, amid concerns about taxpayers' exposure to fluctuating energy prices.
  • The report comes after British public borrowing during last month hit its highest (£22bn versus £13.9Bn in November 2021) for any November on record, reflecting the mounting cost of energy subsidies, debt interest and the reversal of an increase in payroll taxes.
  • The new scheme is expected to cost less than £20Bn ($24.09Bn) over 12 months, compared with £40Bn for the existing one, the report added.
  • The businesses would get a discount of up to £345/megawatt hour of electricity and £91/megawatt hour of gas.

(Source: Reuters)