Government urged to help as businesses grapple with soaring bills

The Confederation of British Industry (CBI) is calling on the government to extend the Energy Bill Relief Scheme for businesses, but should that include estate agents?

Britain’s biggest business group wants is urging to decide which industries will receive energy support from next spring as hundreds of companies brace for their bills to more than double.

The CBI called on the government to urgently set out details of how it plans to extend the energy bill relief scheme for firms with large bills beyond March 2023.

The scheme, which discounts the wholesale cost of energy for all companies, charities and public sector organisations, was introduced in October to replicate the support offered to households in cushioning the shock from fast growing energy bills.

The government has said further support will be provided beyond that date for firms in certain industries but has not yet said which. Businesses had been expecting clarity before Christmas as they draft financial plans for 2023.

Matthew Fell, the CBI’s chief policy director, said: “The high cost of energy is dominating the decisions that businesses are making each and every day.

“There are no easy answers in all this, but the government will have to keep supporting the most vulnerable firms to help them stay competitive, to build resilience and in some cases to avoid collapse.”

Fell said the CBI supported the decision to target the scheme from April to limit costs but said “businesses need to know before the year is out if they qualify or not”.

“We must also take heed of the lessons from the pandemic, where providing additional cashflow support, especially to [small to medium-size enterprises], was critical to seeing businesses through this period,” Fell added.

The CBI wants businesses to be able to defer their energy bills if needed and be provided grant funding through local authorities to reduce the damage of a predicted recession.

In response to the latest plea from the CBI, Mohsin Rashid, co-founder of ZipZero, said: “The CBI has merely said what everyone already knew: businesses cannot afford to foot the bill for Britain’s poor economy. Let us never forget that the original package contained two years of support for businesses and individuals; it was later stripped down after self-detonated economic destruction threatened the stability of the country.

“At present, we are all set to pay for those mistakes in the businesses that close, the jobs that are lost, and the children who go cold and hungry over winter.

“The hour is desperate. The appeal is not new. Nonetheless, who can blame the CBI for trying?

“Politically, the government cannot move: extending energy support for businesses would have to include individuals as well, measures it claims the country can no longer afford. Yet, morally, they have no choice. It is just a question of how many will suffer while we wait for the sound of another screeching U-turn.”

 

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