Jeremy Hunt to meet with business groups as he faces demands to set out energy bills help for firms

Jeremy Hunt is to meet with business groups today as the Chancellor faces growing calls to set out what further help the Government will provide on energy bills.

Representatives of the Federation of Small Businesses, UK Hospitality, the CBI and the British Chambers of Commerce are all expected to attend the lunchtime talks.

Mr Hunt is under pressure to provide urgent clarity on new assistance for firms ahead of the end of existing support in March.

The Chancellor has been warned many businesses are facing ‘a steep cliff edge’ in April, as well as being unable to plan for this year without knowing what fresh help might be offered.

The Government infuriated firms before Christmas by delaying an expected announcement on further support until the New Year.

Under the current scheme, businesses have seen wholesale energy prices on electricity and gas capped at about half the expected market price.

But firms are braced for less generous assistance when the existing package of help ends in March, as was the case when Mr Hunt confirmed extended energy bills support for households.

Jeremy Hunt is under pressure to provide urgent clarity on new assistance for firms ahead of the end of existing support in March

The Government infuriated firms before Christmas by delaying an expected announcement on further energy bills support until the New Year

Kate Nicholls, the chief executive of UK Hospitality, and Martin McTague, national chairman of the Federation of Small Businesses, are urging Mr Hunt to set out further support

Under the current scheme for households, which also ends in March, energy bills are capped at around £2,500 per year.

This will then rise to around £3,000 for the 12 months to April next year, under plans announced by Mr Hunt at the Autumn Statement.

Kate Nicholls, the chief executive of UK Hospitality, said it was ‘vital’ that support for businesses was similarly extended, as it has been for households.

She warned that, without further assistance, the sector was ‘facing a steep cliff-edge in April’ and the delay to an announcement was having a ‘corrosive effect on business confidence’.

She told the BBC: ‘A steep rise in energy costs, coupled with other inflationary pressures, staffing challenges and rail strike disruption, could prove fatal for many.’

The Federation of Small Businesses said small firms ‘can’t plan their 2023 without assurances’ on how much their energy bills will cost.

National chairman Martin McTague said: ‘Our research shows one in four small firms expect to either close, downsize or radically change their business model if the energy support dries up after March.’

The chief executive of the Chemical Industries Association said there would be ‘widespread concern’ over a significant reduction in the level of support for energy intensive industries.

Asked on BBC Radio 4’s Today programme how concerned the association’s members are that energy support will fall, Stephen Elliott said: ‘Only last week we actually got confirmation that some businesses were actually included within the scope of that relief, so it’s taken time for some clarity. 

‘We’re very interested to learn about what will happen from the end of March.

‘Throughout 2021, and pre the Russian invasion, we’ve been looking for more targeted support with the Government.

‘I think more can be done for a targeted intervention for energy intensive sectors such as chemicals.’