Energy support for businesses could be more than halved, reports suggest

Energy support for businesses is expected to be more than halved beyond March 2023, according to reports.

A statement from the Treasury regarding the continuation of support had been expected earlier this month but was delayed until the New Year.

At the time of Jeremy Hunt's autumn statement last month documents on the Treasury website had suggested that some support would remain for hard-hit businesses beyond March 2023, but the overall scale of help offered by the government will be lower than suggested under Liz Truss' government.

Truss' six-month package had been valued at £18b, a level of support government said could not be continued.

The Times reported that Jeremy Hunt will announce a 12-month package in January, but with the level of support more than halved.

Hunt had previously suggested that support would be targeted at vulnerable industries, but The Times has speculated that this approach could be scrapped in favour of a lower, universal package for business.

Earlier this month a Treasury spokesperson said: "We are protecting businesses from high energy costs this winter, caused by [Russian President Vladimir] Putin's invasion of Ukraine, through the six-month £18b 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."