CBI calls for emergency grant to tackle energy crisis
The CBI has announced on 24 August that it will work with new ministers to ‘explore all options for navigating the crisis’ and proposed a three-point plan that can be delivered at pace to support vulnerable consumers and businesses by targeting help where it is needed most.
The Confederation of British Industry (CBI) with business groups has called for the Government to introduce Covid-style emergency grants and a cut in VAT as part of a package of measures to help firms survive spiralling energy costs.
New survey data from the CBI reveals the extent to which businesses are concerned about soaring energy costs. More than two-thirds of firms expect its energy costs to increase over the next quarter.
The report found that a third of firms expect energy price rises to act as a barrier to growth, by stifling current or planned investment in energy efficiency or Net Zero measures.
It added that many firms worry that further energy price rises could push viable businesses to the brink unless urgent action is taken to support them and their supply chains.
The CBI has announced on 24 August that it will work with new ministers to “explore all options for navigating the crisis” and proposed a three-point plan that can be delivered at pace to support vulnerable consumers and businesses by targeting help where it is needed most.
The plan includes “urgently” introducing targeted interventions for the most vulnerable households, through existing mechanisms like the Energy Bills Support Scheme, to instruct HMRC to replicate Time to Pay flexibility granted during the pandemic to take account of energy price rises and to extend to the Recovery Loan Scheme and commit to its expansion.
It also calls for the Government to help keep costs down, asking for it to announce a business rates freeze now for 2023/24 and to kick-start an energy efficiency drive to reduce demand, stating that the UK Government should roll out a programme to improve energy efficiency by providing people with upfront financial support to help retrofit household insulation and provide energy efficiency support.
Matthew Fell, CBI chief policy director, said: “The impact of soaring energy prices on households is going to have serious consequences, not just for individuals but for the wider economy. While helping struggling consumers remains the number one priority, we can’t afford to lose sight of the fact that many viable businesses are under pressure and could easily tip into distress without action. “
Fell added: “The steep rise in the price cap will hurt households across the country. Left unaddressed, October will see millions plunge into fuel poverty with the consequences felt right across the wider economy.
“Government support to date has been right to focus on the most vulnerable customers, but the scale of help must be urgently reviewed in light of today’s announcement. Government must also step-up and deliver a national energy efficiency programme that will help reduce household bills as soon as this winter.”